I'm guessing that Don must be near Class I buys on COMPX, NDX and SOX.
Market Swing Discussion: Chat Room Notes and Recaps
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Posted by Nikko_thyme on Wednesday, December 04, 2002 - 2:20 pm:
Chat Notes 12/04 1:00 PM
Daily Signals: (At the lows today)
NAZ, NDX, SOX : CLASS 2 BUY
DOW, SPX, OEX : OVERSOLD
VIX : Borderline CLASS 2 SELL
CLASS 1 BUY signal's are not likely today, unless the market was to
drop very hard.
The NAZ, and NDX has a high reliability, multi day Island Reversal
pattern, which can be viewed as similar to a multi-day Abandoned Baby.
The market needs to stay negative, and close negative to maintain it.
Donald had a 60% short position, (after averaging up his cost) until
yesterday when he closed 1/3 of it. He no longer has any option
positions. If the market closes at the lows today Donald will likely
close another 1/3 of his current short position. Donald would not be
surprised if the market bounces after today, especially if the market
closes at the low of the day.
The first area of resistance may be around 1088 which is the top of
today's gap which created the Island Reversal. The second resistance
area may be the mid point of the Island pattern. The third area of
resistance may be the top of the Island formation around 1156. There
is a good chance that the next rally will not set a higher high.
The Capitulation Indicator is moving up, but is far from a significant
spike, which would call for a minimum rally of 18%. |
