Thanks Steve, << I am the one that applauds the brinkmanship >>
I have to do that all the time to continue to churn these long posts every day from wilderness of my country, as I always highlight it may be that no one is reading or may be no one is benefitting, for me it is a service to my ownself and as such when I hit home runs I take due credit. This is like what JT says ' splash of ice water' helps me to achieve higher standards. Improve on my forecasting and see where did I go wrong.
<<This is the super Thread of trading.>>
It means a lot to me, after more than two years of existance we have now reached a stage where our integrity and 'honesty of purpose' is envied, IDEA have earned respect of fellow traders, thread collectively is considered as one of the most informed and enlightened with outstanding contributors. I take great pride and enjoy the best of this thread from exceptionally gifted posters, like a lively sea IDEA spews out fossilized on the shores..Inter-activity and lively debate on issues is the hallmark and it is great we all contribute the best we can for our mutual benefit, this is the motto, benefit others from what you have. If we keep this as our core objective we all will flourish.Amen
I want you to look at this chart
quote.yahoo.com^DOT&d=1ym
and be very careful with where DOT is right now, look at this very point it has been a resistance post Jan 99 and a support going back few months rather a solid support and a solid resistance, these are the kind of points which are tricky I would therefore go for that index trade and in some of my stocks at 592, the last itme I did that it was very good.
If only 540 is taken out on two closing basis this will break this support and we can see as low as 440 but the chances are remote, I see a lot more movement in SPM.
However, I see a possibility of a good rebound from 545 to 565 area to 625, CMGI has a great support at 200, I see AOL 112-5, ATHM 105-110, we are at supports on EGRP and SCH too so be careful with the internets shorts. I would cover thme in an oversold market, rather my trade would be on the otherside, I still think the real money will be in divergent play, remain invested in a right sector and get out of cyclicals and BKX. On BKX if 850 is out I expect it to hit 800 and I expect that level to hold.. 1292 will not be easily taken out, it would take a lot of doing and I would like to trade that very nicely..
On European markets and global markets don't expect them to sell hard, US and Europe are at different divergent cycles, here in US inflation is a problem or so called issue in Europe it is still lack of demand, so higher interest rates may set some fears but markets will deviate, a big sell off in US may not lead to big sell off in Europe, now here is the trick in absence of global repsonse if you expect that next day markets after the sell off will open lower, you may be in for a surprise as Europe would recover from weak opening I will not be surprised that we may not see in next few hours CAC and DAX down big, rather as these indexes recover the discount on globex may become a premium, so don't take cue from global markets this time US marekts have to be traded off Comp and NUTS or BKX.... I will back test this analogy in next few hours I would like to see if Europe recovers or nor, I definitely think it wil if not today the deviation in Nikkei and Europe with DOW would be glaring..
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