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Strategies & Market Trends : Tech Stock Options

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To: ViperChick Secret Agent 006.9 who wrote (39475)4/14/1998 11:01:00 AM
From: Kevin  Read Replies (2) of 58727
 
>>> OWO I
yesterday morning you were indicating that the little guys were selling the SPX and the big guys buying....if you were watching ...was the dynamic the same when the market rebounded in the afternoon. what i am looking for is.. if it was the same...then we see that lagging effect..... <<<

Hi Lisa, how are ya?
Here's what I've found researching block and non-block money flow for the SPX: non-block can control intraday movement of the index, however ultimately the block MF will determine overall direction.

What I mean is this....say all this week we witness strong positive block MF, but the index is falling on non-block selling each day.
To me, this is creating a buy opp because IMO the positive divergence will be filled.

>>> which is seems I remember you would get into a position a little early if using MF for stocks...
just trying to see how it works with the SPX <<<

You're correct...there is a lag in response to the block MF. That is how the divergence is created and hence the opp.
Based on experience upside opps get filled much more often and much more quickly.

>>> btw, what kind of breaks do you have today for cash and futures....seems like we might hit it... <<<

SPX: 1113.30
SPM8: 1121.60

SPX target by the end of the week 1120-1126...getting several indications in that range

See ya!
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