Idea Of The Day Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Tom Trader who wrote (14821)	11/20/1997 3:13:00 AM
From: IQBAL LATIF	Read Replies (1) of 50167

TT- I am not bearish , sorry for not being clear so far- I think 890 is a very good support- or 6900 on DOW _ that for me is a bearish level. I don't believe that we are going to see a market at say April 96 level that is 750 on S&P. For me it is imprtant to keep a picture and possiblity on the down side. TT- At one given time an average of 20- 30 contracts on S&P options are always very rarely S&P positions are carried overnight. Like I was short on 12th evening when my level was taken out at 910. Market direction for me is important as I have much more a leeway in 'options' ofcourse 'futures' are with very strict stop losses, like a break of 935 would have made me short until 928- since S&P on Globex and during the day did not break 935 rather 937 turnaround my strategy was as I wrote buy the supports and sell the resistance, that is exactly what I did. TT- I did not buy the protective puts since 47-48 region is in tact, I did cover some naked option puts which I had sold at 941 level if Bond would have weakened I would carry them over night, last night I did not feel comfortable. If you look at the 'yield curve' what do you find Tom- you will see the front end flattenning of the curve- now why should you risk your money for 30 years when you can get 5.70% for 3 years, now the only way this situation can be corrected is that Feds should cut the rate- I just don't see that happening and have been adding to more puts 118 when last night new contract high was made. TT- We are running a huge short in Matif and although under water plan to run it because Karim feels that Matif at 99,66 will not sustain, I think same for bonds, if you treat Bond chart as a commodity you will see 120 within striking distance and no reversal possible before that this is the ultimate for me- one strong number and you see bond backs down to 119 or even 118 some 'money managers' are talking about 3 point loss, however it will not be bad for the market as market is not prized for 6% for that kind of yield if properly prized will see far sharper valuations. Last night rally in Dow was a result of this bond rally realisation- it was this one reason DOW big cyclicals moved ahead and others languished. In a down turn in market this pattern will not hold we will see cyclicals moving down faster then SP. Correction in S&P Tech laden index will be far less critical in my 2 cents worth but anyway this was a hypothesis and we will come to it when situation arises. (Downturn will be associated with real break down of going forward corporate profits) . Differences will ofcourse continue but I understand your position very clearly it is nice to be watched closely- it gives me more reason to write. I will look forward for your response if things keep cool on the thread Nesrin's restrictions of 1 hour only will also be lifted.gggg

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next