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To: bambs who wrote (40036)	9/22/2000 10:10:40 AM
From: The Phoenix	Respond to of 77400

Stolen from another thread.... I swear you could have written this. <ggg> From tonight's Option Investor Newsletter: The number one question tonight is how to play the morning drop. First we need to determine when the drop is over. Normally we will get a huge downward spike at the open followed by an upward spike as the first wave of sellers dries up and the first wave of bargain hunters rush in. This could take 10-15 min. The size of the upward spike, if any, will impact the sentiment of the remaining sellers and buyers waiting on the sidelines. A weak spike will create a second wave of selling and dumping by the bargain hunters that jumped in too early. The second dip would be the one to buy but only after the ticks turn positive and the market heads up again. The possibilities are endless for combinations and many scenarios would contain increased selling as the day wears on. Investors may not want to hold any positions over the weekend and the possibility of another warning before the Monday open. I expect Intel to try and sugar coat the news to prevent a total stock melt down. They will probably be on CNBC talking about the good growth, strong sectors and hot products. Whatever they can say to provide optimism. Investors looking for any hope whatever will cling to these comments and use them as an excuse to buy. This may take the sharp edges off the disaster but I doubt they can make it go away. Before you decide what to play on Friday you should consider the broader market direction. Yes, the Dow was up strong today but the broader market S&P-500 dropped -2.29. The S&P has been falling and is sitting exactly on its 200DMA. Same with the Wilshire-5000. Both were poised to break under these critical points and Friday could be the last straw. The S&P-100 is already under the 200DMA and only 4 points above the June/July lows. This looks like a recipe for disaster if investor sentiment turns negative tomorrow. Consider carefully the risks before you commit your funds.