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Strategies & Market Trends : Trading the SPOOs with Patrick Slevin! -- Ignore unavailable to you. Want to Upgrade?

To: Lee Lichterman III who wrote (5377)	6/15/2000 12:53:00 AM
From: Gersh Avery	Read Replies (1) \| Respond to of 7434

OK how about IP (I don't know<g>) Well .. I figure that we're about 140 or so S&P points to high for this time frame .. I figure that the minimum move for a regular sell signal would be ~40 SPX points. So I got this indicator .. at this time it looks like it failed .. course we still got three more days. Now if it fails then I could look at it in one of two ways. Either a failed sell signal is bullish and we go to the moon. Or .. there is still a lot of overhead pressure that has not hit. In this case the new move would be the 140 + another 40. Two things lead me to believe the second. First the new sell. The last couple of months the impact of these signals have kicked in a couple of days before they were supposed to start so we could actually flesh out the first sell .. but the second sell sets a lid on the possible move up .. flat for the next month? I doubt it, but stranger things have happened. Then there's our current situation .. we are well over the point of max pain. Now everybody that bought all of those calls intend to keep the stock right?<g> That makes Monday a day when there is a whole mess of stock looking for a new home. BTW the current time frame lasts through Monday. I figure that there is a bunch of stock that is being held long as a hedge against calls in case that the market should go up. Once the market starts to move down the hedge will come off. I wonder how soon one of the large holders of these covered calls bundles realize that Monday would be a heavy market day because of excess supply. Once the first sells off the hedge the rest could follow very quickly. Now that might be before Monday ... but then again it could wait until then.