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Strategies & Market Trends : Classic TA Workplace

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To: ajtj99 who wrote (55087)	10/1/2002 7:29:51 PM
From: mishedlo	Read Replies (2) of 209892

Max Pain analysis - A look ahead An interesting rally today. Let's see why. Look at QQQ P/C ratio strike 20 20K calls vs 65K puts strike 21 21K calls vs 89K puts Strike 22 84K calls vs 93K puts Strike 23 79K calls vs 62K puts Strike 24 141K calls vs 32K puts Short at will if this ramp gets to QQQ 24. That is IF Max Pain does not rise on this ramp. 24 nonetheless will be formidable resistance for this month. 23 is stiff resistance as well, but expect the F*Heads to jam this as much as possible before the tank. If we get above 24 and stay there, delta hedging long might occur and shorts better watch out. Maximum Pain is 22-23 This could be a one day wonder. IF we rally beyond this point AND idiots pile into calls, the rally is OVER big time (OR delta hedging occurs an there is an enormous blast off). Max Pain normally rules out both extremes which suggests chop for two weeks into expiry on the 18th. The crooks did what needed to be done today, by destroying puts. Now if shorts pile on we rally furher, if longs pile on with calls we sink. It's as simple (or crooked) as that, most likely. M

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