Russel- Thanks- The importance of a double close above a key resistance is very important and cannot be understated- look at this post of yesterday and my prediction that until 1800 is taken out twice or SOX 262 one should not move otherwise we see a test of 250 and 1765 on SOX and composite.Even SPM 1120 was pierced many a times even at one time as high as 1124, some of my firends were stopped out as they shorted ran for the cover above 1122 and saw it back to their levels, similarly one decided not to wait for a double close above 1800 and went for long trade once he saw 1800.6 but yesterday realized that sometime this reistances are made of steel alloys.
'Now I will look for that run on to 1840 if I have a double close above 1800. I see a lot
of undercurrents and as I wrote on 3rd my configurations are assembling together
predicting a good run ahead, SOX moved up as I thought but I will wait for my new
positions above 262 and above 1800 second close.
ASND moving along very well, BKX was weak but I maintain my forward looking bias.
LSCC one of the bad ones in my holdings in my opinion has reached a bottom, it still
looks vulnerable but I would keep this on my list to purchase if 35 is maintained. I will
like to highlight CAT which I read today is showing some promise. I will also like IBM
120 calls for my account over and above my core holdings only if 1800 sanctity is
maintained. I will like you all to look for support of 255 on SOX and 1788, if these
supports are taken out we may see test of 1765 and 250 on SOX and 1110 on SPM.'
The second close never came and as 1788 broke I reversed my positions on SOX. This is important that a forward bias does not man that key supports are forgotten, like yesterday, on one hand I was highlighting my bias to go long above 262 and 1800 on the other in the same post I was considering a break of 1788 or 255. Now, nothing on Wednesday close was suggestive of any impending problems, although LSCC looked vulnerable, but I was prepared to get into it if 35 level was not taken out, however all this market reading is just simply not one sided phenomenon, it all boils down to ranges, supports and interpretation.
One thing I have very respectfully disagreed with 'the big boys of BK' is that no market has a permanent bias. That is what I try to teach here. I open my shop with one objective look at both side of market. Market opens everyday if you lose your capital you lose every thing. Never be over confident, and ready to ditch your positions once key supports are taken out. For me SOX is a hell of a buy here if it maintains 243-237 intra-day but once I have a double close below 239, I see a possibility of 210 now on SOX, in major supports like this you need to be careful, we have sometime a false touch, but this should not cloud clear objective my thinking. I will look for INTC breaking 68 or TXN 511/2 , I will re-interpret my bias and move my strategy to take advantage accordingly. With kind of bullish remarks of yesterday by AG, I would like to see IBM GE and many others to set SPM moving above 1120, and overall setting the market tone.
I would see some possibility of more pre-announcements, in June with pre-announcements the sentiment is such that even that beaten down 'Tech stocks' may be forced to historic lows just that may be the point to enter at lows instead of 262 like I have been predicting since last week. A break of 243 may lead us to 210, composite will look to test 1719 level in such a case. Russel 2000 support is very critical right now and a break here may lead to 417 level, but in my opinion we are in composite on the lower level of a range and I would like to dwell on it further only if 243 is taken out. On these very critical supports I would not like to be caught short. Like my 1800 proprietary level or 243 ggg I would like to see the 1765 and 243 not to be taken out on closing basis. |
