Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: J.T. who wrote (3378)	5/31/2000 2:04:00 AM
From: 2ripley2	Read Replies (1) \| Respond to of 19219

As always, JT, appreciate your market take. What a day to take a leisurely late (RMDT) lunch! Although I lost out (50% cash) in taxable account today (& kicking myself for not picking up JDSU @ 74 recently - now 91+), I may be able to take some 401(k) MF's off the table at a nice ST profit if tomorrow COMP/NDX closes in the green. We'll see. As a novice in TA/Index analysis (& still very green), I tend to take a more "seasonal" look at entry/exit points, and/or playing the tops & bottoms of trendlines in a gorilla/gorilla-like stock... but experimenting with shorter term position plays. Options are still a mystery to me. Understand the concept, but not the details or benefits of paying a premium for the privilege to purchace at a gambled stock price in the future... when one of the primary (unofficial) purposes of MMs seems to be to close on options Friday at a worthless strike price. Guess I'm dense, but it just seems like a losing proposition to me. Intrigued by your index analysis. Trading long only until now (almost 2 yrs), but wanting to learn more about trading both sides... shorting & options. You speak of summer rally, yet I have only endured getting creamed in the summer so far, only to survive an unbearable October for a recovery & finally profit in Nov-Mar rallies. Admittedly, I have probably been watching charts on individual stocks, when I should have been paying more attention to the overall market indexes. Any advice to put it all in perspective? tia, 2rip

To: J.T. who wrote (3378)	5/31/2000 10:41:00 PM
From: J.T.	Read Replies (2) \| Respond to of 19219

Rydex Total Assets Update for Wednesday May 31st: SPX Long - NOVA 647 Million SPX Short- URSA 313 Million NDX Long - OTC 2.779 BILLION NDX Short- Arktos 132 Million Money Market - 1.251 BILLION ----------------------------------------------- Last night I mentioned this market is going to be tough to pin down and both Bulls and Bears are going to get whipsawed. Today was no exception as NDX et al again failed the back to back upside test and it again has everyone on edge. This is guerrilla warfare and the buy and hold mantra can be thrown out with the bath water. It was the strength of the BKX index back to back above 820 close ( BKX closed at BKX 829, +9)plus strength in UTIL (UTIL 328.5, +3.8)and MER back above 98 (MER 98 5/8 +4) among other reasons that prompted me to go long. I think we can get one more upside follow thru here unless NAPM or construction numbers disappoint tomorrow. As for Rydex numbers tonight, I am very uncomfortable with SPX Long NOVA vs Short URSA now at a better than 2 to 1 clip asset-wise. Moreover, NDX Short stayed quite low although here the whipsaw was end of day after fund switching had to be done prior to the bell. For the market to do my bidding: tomorrow is a medium to strong up day that sets up for Friday's employment report. Just when everybody throws in towel to go long the monkey wrench comes in and we go down hard for 1 to 3 days and find a lower bottom below last week lows. A complete wash-out. From those extreme intraday lows the June rally then begins... If this type of scenario materializes, it will be extremely painful to most but for those who are prepared it can make your entire year... Best Regards, J.T.