<<I would sell on highs like 1360 area and buy around 1328 to short
again below 1322 for a test of 1292 in near future. For this test 888 on BKX and 2500>>
<<I would like that 892 on BKX would
result in DOW going down to 10500 and 1292 to surely tested, I would play the
market safe and not try to bottom fish, I will cautiously trade indexes only I would
expect that DOW BKX and cyclicals interest rate sensitive stocks to be hardest hit
where as Techs may soon find a bottom, I would like to sell out of the money calls
and buy puts on any rallies to 1355 area, a close above 1364 in present
environment is difficult. DOT has taken out 625 and will probably find this test of
600.8 once again if worries multiply DOT may retest 540 area, I would trade DOT
long above 632 and short below 597....>>
The above post reminds me of the levels and inter-relations.. read it and enjoy it, it looks as if it was written today morning, the inter-rlations worked with accuracy....
Monday, May 17 1999 1:18AM ET
Reply # of 26539
CPI has dented the market, two important lements in this number are housing cost
increases and apparels, I would think that CPI number may have shown a sharp
increase but several other times before this number has spooked the market. One thing
thattroubles me is the core inflation that I know is something that Fed looks at it very
closely although PPI has helped to allay the fears but CPI will keep this issue in the
forefront until next series of economic numbers, I would think that markets will remain
very jittery and AG who had cut the rates last year in anticipation of global meltdown
may decide to surprise the market by letting the market know of his bias towards
tightening, I would think that Fed would like to send feelers of concern without acting on
the interest rate front. I would suggest that benign wage inflation and this huge gap
between output and capacity on domenstic front alogwith weak European performance
may restrain Fed, but a shift in stance is a 1500 point potential hit in my opinion, I
have taken a very defensive posture and has been cautious for last few weeks and will
continue to do that until things completely change. I think that real money could be made
on back of volatility, i would sell on highs like 1360 area and buy around 1328 to short
again below 1322 for a test of 1292 in near future. For this test 888 on BKX and 2500
on Comp will be decissively taken out, I can see that these worries can take market to
as low as 1980 on NDX, so for us as day trader we have to have this cautious stance
and nimble approach to trade the voltility we will see as I have said before a pattern like
890-990 band and I would like to trade this band from lows to highs...
They would like the bond yields and the markets internal mechanism to take care of this
threat of rising prices, the yields have moved up quite a bit and probably wil hit now
6.05%, I am looking now at 117-118 area where I see a support for the bonds. Since
last one week I have been highlighting the possibilty of strong numbers on Thursday
after PPI I thought we are home that decieved me but I kept my discipline to wait for
the Friday opening. One thing is certain that now after CPI this is not a market to go
long until 1378 is taken out, we have seen a drop from old highs and inability to close
above that level, I would like that 892 on BKX would result in DOW going down to
10500 and 1292 to surely tested, I would play the market safe and not try to bottom
fish, I will cautiously trade indexes only I would expect that DOW BKX and cyclicals
interest rate sensitive stocks to be hardest hit where as Techs may soon find a bottom, I
would like to sell out of the money calls and buy puts on any rallies to 1355 area, a
close above 1364 in present environment is difficult. DOT has taken out 625 and will
probably find this test of 600.8 once again if worries multiply DOT may retest 540 area,
I would trade DOT long above 632 and short below 597....
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