For me some are good calls and some are just outstanding for me DOT 550 and IIX supports highlighted on 20th April post were typical example of a trader who amidst worst of selling comes in and buys the support. I look at the levels like 1292, 1980NDX and DOT 550 they look like music, nice to see the thread longing at such a low point and nice to see most of us took advantage..
<<IQBAL LATIF on Apr 20 1999 3:50AM EST
DOT 550 has been a major resistance on the way up, whatever one can call this
550 where DOT retreated on its way up, the history of this index is limited and
DOT is litered with big names and successful companies and some with .com at the
end. I would think we had this nice test of 550 area, if we break this today and
tomorrow we may see DOT drifting to 450 but most probably the selling has been
quite steep, the calls to deliver stock after such a steep decline will be going out, the
outstanding shares are limited and if what I am looking at technically is watched by
others who shorted this index we may see a break of 625 the next resitance now, I
would assume that it is worth a shot to go long at these depressed levels, we laways
had this fear that what is going to happen to the markets if internets bubble is
pricked we have this bubble deflated and all said and done we are at quite decent
highs as far as market is concerned, NDX 1980 is tested and 1292 my opft
repeated elvel was tested yesterday a point lower where SPM came back and
closed at around 1302 level, so for me 1292 should hold I think we are seeing a
movement in sectors although we lost a lot of premium on our May calls but selling
DOT outside the moneys helped a little and now we can afford to add at these
levels like I did last night, I will still not sell puts, if EGRP looked at 144 good the
puts 100 were far enough now 30$ in the money, we may see that loss premium in
calls is a loss which can always be hedged against a falling index but in the money
puts are painful and crucifying. >>
I look back at this post look at my previous messages where I highlighted several times that 1980 on NDX and 1292 on SPM is perfectly possible, although we saw a drift to 1290 on SPM and 1967 on NDX and 544 on DOT but the turnaround was equally good, I think a double close above 625 which I highlighted when market was reeling at worst will take us to 700 resistance, IBM will play very positive as stock has come up with great earnings, I look back at my several posts reiterating buys and I can just take great pleasure in seeing earnings setting the tone of the market, I would think that 1372 on SPM BKX 957 and 437 on RUT are objectives of the market. Nothing is sweeter than taking victory from the juaws of certain collapse, on Monday when I was writing DOT and entering new positions the premiums had just eroded, although I had traded the index down but adding at a support remains on of my finest trades, in intensity of the move as I made a huge leverage with huge outlay of the out of the monies was no less than 1310 entry back in Oct, it is at the most critical supports. |
