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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: zainrehanzack who wrote (32377)	8/4/2000 9:45:22 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

<<how could you relate the levels of INTC with Comp potential rebound. How could you think of SOX 200 days MA would hold when market futures were down big? How did you evaluate that INTC will be around 61.70 and Comp will trade at or about 3540? >> You guys have started grilling me hard! Always know one thing, asking the right question is the way to success, you may not know everything but asking the right question is the art. Behind few lines is lot of thinking and study..what appears to be a casual post is written with some little care..gg I am happy that you have raised these interesting issues, great questions and I would try my best to satisfy you, accept my congratulations to be able to pull the trigger on a trade which looked risky. Now this is not magic, on days like yesterday the art is to keep your cool, many a time these things have happened, and all kind of negatives have been written, you need to watch the recent market history on a volatile day to think what's happening in the market, yesterday when I pinned that 3540 level it was not that Iliked that level or it was a limit within a gap rather it was the closing point on a very volatile positve session, now a close of 4/17 at 3535 where we saw a 6.56% MOVE IN A DAY FROM A LOW OF 3227 to close of 3539 made me feel comfortable that 3539 is a support, a resistance in a market moving up does become a support, so a point that was good enough to stop a 6.56% rally should be good enough to hold a sell off. That goes for the 3540 point, now how did I relate it to INTC 61.70, again it is not rocket science look back at INTC chart on 4/17 the low was 54.78$ and the close was 61.50$, when the market was at 3227 INTC hit 55$ I thought and when it hit 3539 close the INTC closed at 61.5, I was aggresive in my stance and moved the point higher to 61.9 so as to get the trade in for guys like you, I thought when we will hold at 3540 we will see INTC around 61.7$ it was little lower but overlook that at the end of the today it is all about looking at markets little more deeper than the next guy. SOX 880-890 has been a traditional support of SOX far too long. GO back to 4/17 and 876 was the low of SOX on that day when we touched 3227 on Comp are reversed, for me 936 in all likely hood was ap oint we should have held as in my opinion SOX had a absolute reversal point at 815 anyway at maximum retracement of 62% from the high, as far as 200 days MA was concerned it was more from my thinking that SOX selling is overdone. Now look at the reversal 880 was rung yesterday that was 4/17 low on SOX a near 4 point higher but we closed above that 936 the 200 days MA, that is a perfect bottoming out signal, although many a good technical calls have been negated but new technical theory is not to be written, yesterday SOX in my opinion gave a perfect example of test of lows break of major support and reversal above 200 days, even DOW closed above 13 days MA, so all this for me shows consolidation at higher levels continues, as far as major problems are concerned Zack I am little more aggressive, I only think of next stage when myt earlier supports have given up, for me what happenned interday yesterday was noise, don't ever get carried away wait for the tywo day confirmation otehrwise whipsaw will deplete your account so aggressively that nothing will be left for the market play.