MDA - Market Direction Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 677.58

+0.3%

Nov 5 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: epicure who wrote (8552)	3/20/1999 2:01:00 PM
From: donald sew	Read Replies (3) of 99985

INDEX UPDATE =================================== I feel confident that this is a good time to start positioning PUTs/SHORTs, but I would like to go into more detail. Firstly, early April is the top of the 9-month cycle and the bottom of this cycle should bottom out in early JULY. So I would suggest that JULY PUTs be purchased, and with this amount of time there should be a better chance for success rather than going for very short-term puts like APRILs. Right now, I do not suggest INDEX PUTs, since the indexes are highly influence by the few strong momentum stocks. So the question then is which sectors/stocks. The strongest sectors recently are the RETAILERs(RLX), DRUGs(DRG), INTERNETs(DOT), BANKS(BKX), BROKERs(XBD), OILS(XOI) and up to now have not yet shown technical weakness. This is not to say that they have not topped or cant pull back nicely, just that they have not shown any significant signs of weaknes. The following indexes are showing technical weaknesses: NDX - NAZ 100 MSH - MORGAN STANLEY HIGH TECH XCI - COMPUTERS YTK - YEAR 2000 XAL - AIRLINES(BEARISH FLAG) UTY - UTILITIES HFX - BIG CAPS CEX - CHEMICALs FPP - FOREST PAPER PRODUCTs(possible double top) CYC - CYCLICALS(BEARISH WEDGE) PNX - PHONE RUT - RUSSEL 2000 CWX - COMPUTER SOFTWARE(rectangle formation) SOX - SEMICONDUCTOR If I missed any please add on. Right now I am looking at cyclicals and paper stocks as possible new PUTs, since some of them are near a peak. seeya

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next