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Strategies & Market Trends : Steve's Channelling Thread

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To: Zeev Hed who wrote (15488)	5/4/2001 7:23:30 PM
From: ajtj99	Read Replies (1) of 30051

Zeev, just plain psychology would seem to indicate that we're going to rally going into the Fed on the 15th, but not punch through the resistance at 2250 unless we get 75BP from them. I also don't believe we'll drop below resistance at 2089 (you mentioned 2095 next week) before the meeting also. I believe a cut from 0-50BP will be sold, since it's been already factored in today. That said, how do we stay in this trading range? We'll, when there is uncertainty, computers help out nicely. Max90 on Trader J's thread has pointed out how neatly we always seem to push up against upper and lower resistance lately, only to bounce off immediately within fractions of the resistance number. Truly uncanny, or not. I remember reading an article on Goldman Sachs in Forbes last fall, and the CEO said "Volatility is our Friend." Leave it to our friends at the brokerage houses to insure we will be setting up nicely going into the Fed. These wild shakes up and down are also good for shaking the option chains towards Maximum Pain. I'm buying May QQQ puts the afternoon before or the morning of the meeting on the 15th. Odds are in my favor. Fed meetings get sold.

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