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Politics : Idea Of The Day

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To: IQBAL LATIF who wrote (22181)	12/29/1998 1:30:00 PM
From: IQBAL LATIF	Read Replies (1) of 50167

A good test of 800 support on BKX-- and a good rebound, I am seeing smart money moving into borad market the worries of yesterday on a limited nature of move are now being replaced by a more broader move, if BKX Transportation Drugs DOW RUT start moving we can see SPH taking out 1255 although NDX and composite may lag this is exactly a reversal of what happened at 1320 where nifty fifty led the rally up, if we have a close up here which negates three days of SPH move we can see DOW moving higher above the old resistance and SPH making moves on back of a broad movement. I see that internets are down and NDX is weak but SPH is still up 12 points and that is suggestive of smart money moving into areas where they can find valuations. I will like to go long BKX above 815 for a good move up and even a rebound off 3020 on transportation was a decent move.. BKX puts at 770$ can be sold to purchase SPH 1220's as I expect that BKX will benefit from distribution and SPH any how will come under pressure and stay range bound as money starts flowing into mid caps and other sectors of the market so far neglectd..intitial 10 point moves like today shall be blunted if internets and techs go thru that 20 days test or 50 days MA test as BKX Tranportation take the burden of the market broad move may keep SPH above 1192 despite of NDX and composite unable to provide the leadership rally in such a case SPH will fizzle but to some extent only a big move to 1130 support may not materialise as the neglected sectors attract new monies.. for me this formidable market will gradually move to neglected sector and today's action is harbinger of such a distribution. I think if the abvoe is correct BKX Tranportation will benefit from such a distribution and BKX short put premiums may erode and SPH long put premiums may incresae in value worst come to worst if market present trajectory continues we will loose nothing but if it comes down the play on SPH is 3% away whereas play on BKX is 5-6% far one factor more to consider is that BKX has been sold badly and sits on lows if 953 highs are considered where as SPH is on lofty levels- if I see a distribution this can be a trade I am putting it on for a test.. it may be too early but I can see as I wrote to OJ in the morning that this market is going to be a market of mixed fortunes will reward heavily those who are queing for the right sector..

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