Donald; RE:" CEX.X S&P Chemical Index..."
The CEX had a MIDDLE DOJI during a substantial uptrend,
normally indicates the interim top as you indicated.
...not sure what Middle Doji you are seeing there, Donald - I was referring to the Shooting Star yesterday and Bearish Engulfing pattern it exhibited today. Near-Supports for the CEX.X are what, 468, then 466, 463 and finally 460. Lotsa clutter up there.
Already indicated my absent minded error that the XOI supports
were at 457-458 not 467-468. It has to be age...
...I did get into the XOI when the index was at 462 (JAN 460'S
@ 16 1/4). If it does go down further, I feel very comfortable
that the support line at 467-468 will hold and I will average
down so I kept today's position very small, just in case.
um, er... uh {grin} 457-458
Recently started to look at the XMI.X Major Market Index, Donald. Although the UpTrend is still intact on INDU and SPX indices, on the (similar) XMI.X we violated that UpTrend today. The (horizontal) supports are also a little easier for me to read on this market index chart. I assume it's tradable but I haven't looked for its derivatives; I use the oyster (^_^) OEX PUTs and CALLs, but I do not like the BID/ASK spread on these options. Not as bad as LEAPS' spreads - but every time I buy an OEX option I feel like I just turned the key on a new Caddy and the resale value went down 15% :-/
The SOX.X pretty much collapsed today, as heavily-weighted INTC can really drive this thing down. It needs to hold that 275-280 area, as anything below this would indicate INTCW trading at or below ~50, where Intel's P/E would be less than ~18. You know man, if INTCW hits 50 I seriously think about selling Intel PUTs at that point.
The SOX.X has a kind of "triangle" looking formation to it, Donald - and I'm just an old trend line and support level chartist (who's gonna need to start wearing specs under his motorcycle helmet real soon now) So I wonder - if there is any significance to this type of pattern ?
-Steve |
