To: IQBAL LATIF who wrote (27045 ) 6/15/1999 1:17:00 AM From: IQBAL LATIF Read Replies (2) | Respond to
We identified on 9th that if DOT has to move above, 574 needs to be taken out on two closing basis,last few days I emphasised on a double close more than normal for a simple reason a breakout in new territory demands that, it never really materialised, we also identified 555 as the cardinal support for DOT,we closed on NDX and COMP below the supports and 550 on DOT day before, we opened yesterday with a gap and never really recovered, on IIX my posts that if 311 is out and which ever side it breaks will break heavily looks with a benefit of hindsight a remakable post, overweighting in the oversold index like SOX was our trade or PSE based stocks, I think that Techs are at my resistance of 440 and PSE has withdrawn from 545, I would think good levels to take profits on SOX positions and wait for that NDX 1980 test, I would assume that 500 on DOT may not hold rather we may take cue from IIX and test the 200 days MA at 225, we are at 256 area we have a still a huge room where we can test the 200 days ma and than move up, that may translate into 450 on DOT.... I would think that with NDX and Comp supports broken no reason for these levels not to be tested, on SPU the Sept contract, 1292 is the support it relates to June old contract 1282..My next objective would be to be lean try to trade short from 1325 if iti goes up. 1325 for me is the top until circumstances change, NDX in wake of nets cannot stay at these levels, so either DOT has to improve above 535 or NDX will test 1980 the chances of later are higher. I would think that 1292 will hold on break of 1292 we can go and test 1260 support on sept contract, a significant selling in financials below 818 on BKX will herald such a move, now keep looking at IIX, we need this index to start recovering if nets speculators have chance to recover from ashes. I think softness will continue for few more sessions even towards end of the month but those who will have capacity to enter will make big, the earnings next month will be much ahead of last year same period comparisons, market is taking steep route and that is perfectly alright.
