Esteban/Ted; RE:" SPY index..."
You (both) have good reads on the support levels, I think. My OEX chart is fouled up because of the 2:1 split on the options. The damn UpTrend is still intact; looking at the DJIA, that horizontal support at 7745~7755 is formidable. We may bounce here, in which case, I plan to sell (more) into any strength.
I'm short SPY @ 95-1/2; accumulating long OEXXH 440 PUTs on strength.
I was focused on the "internet" stocks, AMZN YHOO LCOS as best-bet short-sale candidates. After scanning all 100 stocks in the OEX, and a few others, I'm looking at GUC DOW and TAN as short candidates. There are evening stars everywhere.
Evening Stars don't always result in immediate downdrafts, so I'll just sell in to any strength here, relentlessly. It may take a week or so for the OEX to really tank, but we've got a serious Bearish Engulfing Pattern on the OEX today that stopped right at the critical support on the DOW. The NAZ is already wasted, the only strength left is in the DOW, IMHO. Oh, the NAZ might bounce around, but there's no evidence of capital flowing into Techs at all: if DELL can't crack 87 on +3 cents upside earnings surprise, the Bulls will surrender, and we'll be looking at buying ops REAL SOON.
What are you guys actually doing? We're all reading about the same...
-Steve
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