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Politics : Idea Of The Day

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To: dave katragadda who wrote (8036)	8/26/1997 3:19:00 AM
From: IQBAL LATIF	of 50167

Friends- 'Trading places' Key to short term trading- My recommendation for market today: S&P= support 919-918 if it breaks we will test 910- 908 break of 906 is bad news S&P= resistance 929- 938 My bias is that we will need to sell at 929 or buy puts around that level- we will close our put positions if we take out 938 on closing basis.Please ask clarifications before you initiate a trade- don't wont you to misunderstand trading levels-SPU contracts not reccomended unless you are sitting the whole day in front of your monitor- always trade and give some time for S&P to probe the level, better if it hangs around at that level for atleast 15 minutes, watch the 5 minutes chart like a hawk- never trade a market on opening- always trade when you see some semblance of order- choas and hectic trading is not your cup of tea- mind you if you have big picture in mind the markets will inevitably follow the course but sometime hype clouds peoples judgement- even a good direction may result in a poor trade. Watch out for following signs of corelation- 1- SOXx if strengthen sharply will take S&P past resistance of 929, so a good opening and strength in tech should give you a pause -you always can short at a higher level. I have always advocated strength of key tech stocks as key to market direction- I still beleive that visible cracks in market effidice will only appear if INTC takes out 90 and IBM 100 and MSFT 128 on a closing basis- a weakness in these stocks always spills into 500- these three stocks although are not very heavily weighted but perception of the market about these stocks is proxy for techs nearly 1,5t$ cap and thereforesmall swings in these bellweathers can exaggerate a down or up swing. Markets it seems are too complicated -yes very much so- you need to keep an eye on many things at one given time but if you reach that goal- you are a class act- Charts lag events not lead them- quite a strange statement but I assure you Charts are not goals they are a small bridge to goal- you are only in an advantageous position if you make the right choice and right dirction- in my opinion market trends need to be objectively studied and trading should follow the trend. 2-Watch out for big nine to take take your cue 6 out of nine if weakening is a sign of S&P unable to hold grounds -add NVLS and Wells fargo to the list. 3- Short term trading is not everyones cup of tea therefore my directional trade will span over a period of 72 hours where we buy some puts or go long at a critical support. 4- You need to keep an eye on TB yields also- the moment you see TB's breaking or rallying past 112,24- somewhere around 6,64% you better close out your shorts- these parameters will avoid the whipsaw and painful holding of positions- anyone who goes long or short without all the above considerations based on charts only or a single factor has no idea of this treacherous market- play like a professional- never enter a market until all the basis are covered -ask your Uncle as many questions as you like- but don't trade like a novice- 5- Nemer puts every morning a great number of suports and resistances for the stocks and indexes -jolt them down on a piece of paper and look at the markets in relation to that paper- even if we make ten trades and 7 go wrong our 3 good trades should be good enough to pay for the 7 bad- but we need to act like a pro- I am extremely sorry for being so 'patroninsing' or 'as if I know it all' but if I am treading you to deep end you will need to play by rules established. 6-Watch out every morning for Brians -economic calender- tie this calender with your positions- I like to be square before major numbers but would take risk if I have a strong feeling therefore your efforts to tie your trades with economic calender is integral part of a disciplined trading of options. 7- Tell me what I am missing here- intentionaly I am leaving two important points which also form part of my intra- day trade strategy- however I would like you to discover those two littles points from my posts in recent past and my way of trading- Charts trading is an open secret and S&P beats the hell out of many a top chartist- they always try to take you down below a support to initiate short and than back up to stop you out- for this you need to always keep a stop atleast 2 points lower than the market or visible on the chart- this is only if you trade SPU but for SPX this can be as low as 5 points. Hope to see if some questions. Thanks

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