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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dennis michael patterson who wrote (31862)	10/29/1999 6:28:00 PM
From: pater tenebrarum	Read Replies (3) \| Respond to of 99985

Dennis, the most interesting aspect is the equity call volume...it's near an all time record as far as i can tell. also the total call open interest is in the stratosphere. what this means is that the rally could very well extend into expiration driven by delta hedging...however, after expiration, look out below... regards, hb

To: dennis michael patterson who wrote (31862)	10/29/1999 6:29:00 PM
From: donald sew	Respond to of 99985

Dennis, Either the pros are buying the INDEX PUTs in anticipation of some profit taking, or it could be a contrarian position implying the the rally is going higher. Since Im mainly in cash now, I decided to box the market. It may work with all this volitility. With my CLASS 1 SELL signals the short-term top should arrive Monday, but I didnt want to take a chance so I boxed it. seeya seeya

To: dennis michael patterson who wrote (31862)	10/29/1999 7:03:00 PM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 99985

My guess would be the big boys are selling puts. Looked like they increased faster than the calls today compared with yesterday's numbers. That would be bullish. That is the problem I will have to sort out this weekend. Fundamentaly, there is no reason for the market to switch gears this fast and this strong. However the options are showing that the rally may be for real and the breadth and volume are confirming the bullish side so far. I am a bit worried though that as Don pointed out, there are already signs of sector rotation. Unfortunately I am about a day too slow. I saw the potential for the rally but didn't get in in time. Then last night I wanted MSFT and calls on the FPP, not in time. It is like someone is reading my mind and buying before the open and before I can get my foot in the door. What is really agravating is I am usually too early in my calls and have to wait for it to go my way longer than I am usually comfortable with. I will know more after I download my data and stare at things tomorrow morning for a while. Don, thanks for the mention in your post. By the time I worked my way to that post, it was too late for me to edit my first response to you. Not much else to say since I don't have enough data yet. I did find it interesting that MSFT rallied up some today ahead of the judgement since the street shouldn't have known in advance it was going to be delayed. Don had pointed out a bearish island reversal earlier but then last night I saw a bullish doji. I think the TA savvy smart moeny is messing with our heads. <ng> Good Luck, Lee