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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: MonsieurGonzo who wrote (6320)	7/18/1999 1:24:00 PM
From: Gersh Avery	Read Replies (2) \| Respond to of 11051

Hi MG .. Re Captin Jim His target is twofold. first he wishes to be short in a IRA. The ProFund does this for him but has a problem in that it is end of day only. To overcome the end of day stuff he offsets by QQQ or SPY depending on what the short is he is working with. He then has a neutral bias until the moment that he wishes to be short. At that time he just sells the QQQ or SPY. When he wishes to cover he repurchases. No uptick needed. nice Gersh

To: MonsieurGonzo who wrote (6320)	7/18/1999 4:03:00 PM
From: Berney	Read Replies (1) \| Respond to of 11051

MG, Re: Captain Jim's Musing I have not done my own DD and will! Jim stated that the fund targets about a 1.8 short position of NDX, which is why he targets QQQ for the other side of the transaction. His actual experience was that it was an extremely difficult creature to daytrade as you're playing with the end of day NAV's. The benefit with the hedge is that at least I have 1/3 of the account working in a down market, but can make it flat on upward reversals. Then liquidate the long position when it goes negative again. However, I'm sure you understand the concept better than I do. I agree with you that IBM has done a wonderful job of reinventing themselves. I'm particularly impressed with their stream of royalty income. However, their valuation is excessive from any perspective. I don't often see stocks out of their weekly channel and to see this one out of the monthly channel -- Whoa! In addition, I've witnessed and reflected here before that it has a habit of doing a 50% Fib retracement. I've been doing some work with the projected moves of a breakout. Bobby Beara helped me immensely with OEX by bringing to my attention the breakout of the inverted head and shoulders, which projected to 735. I'm going to try to pay more attention to these formations in the future. The S&P is a different issue. I did some rough calculations last night that projected to 1450. INDU is even more interesting. It definitely presents the bull's case. The monthly trend line was firmly intact from 1/95 to 7/98. Thereafter, it broke and acted as resistance until 4/99, when it broke back into the trading channel. As long as this long term trading channel is maintained, the bull is alive and well. I see the current bottom at about 10,500, but due to software limitations (no ability to extend), I cannot compute the top. I'm mining some information from my work this weekend, but I'm probably not going to be ready to post the summary until tonight. In any case, I'm not totally ready to jump on my bear sword quite yet. There are a lot of Big Boyz bumping against down trend lines and it will be interesting to watch how this unfolds. As is often the case, it is a mixed picture with the resolution to be determined. We could still witness some interesting sector rotations. Just a View from the Humid Swamp TB