INDEX UPDATE
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I first want to mention again, that I am neither a BULL or a BEAR, but that I am attempting to identify as many ripples in the market as possible.
It was obvious that the HiTech was weak yesterday, and with that there are now some CLASS BUYS for the very short-term.
WEAK CLASS 1 BUYS: INTC, CPQ
CLASS 2 BUYS: XCI, SOX
Just heard today that CPQ was just downgraded by Lucie Painter.
The buy-day is today at their lows of the day. I am neutral towards these signals, but just stating my technicals. But what it tells me is that the HiTechs could regain some of their losses either today or tomorrow.
I still feel that the market will overall be relatively flat for the next few days and that the buy-in days for initiating PUTs are THR/FRI/MON. Originally, I had indicated MAR 11-13, but moved it up a few days. I consider flat to be plus or minus 30 DOW points.
The pullback should be stronger than the one we had 2 weeks ago. I know many would say what pullback. On a intraday basis the DOW dropped about 130 points on 2/19-2/20. At this time the support for this small pullback should be in the 8200-8300 range.
Just heard on CNBC how they are stating the fears of the rising interest rates and that Friday's economic numbers may be have impact on the market. Even if the numbers are interpreted very good to the market we could see a short-term pop but could postpone the pullback by a few days. Now if the numbers are bad, the market should do its small pullback then.
My strategy will be, if the market remains flat for the next few days, to initiate a small position of PUTS on Thursday, awaiting for the news on Friday. If the market moves up after the news I will add to my PUT position.
Seeya |
