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.

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

To: James C. Mc Gowan who wrote (34650)	10/12/2000 12:19:32 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

<<I presume the institutional shorts covered at about your 1349 interday low.>> Markets cover at crucial points, this 1349 isone of those theonly difference is that we tend to look at theseno-non-sense points rather a little closely. In my opinion these kind of tests are important and one spike is never the case we may see some selling and we may see a retest of 1349 rather as low as 1329 I think it is 4/14 low if memory serves me right. I have learnt that when ever you trade spoos more often than not you get trapped, therefore I have recommended options on spoos, the point is that 1350 cover yesterday was a classic cover and we have been rather very smartly building up our small 7.5% to 4% positions on spoos..what happens in this case is that in a downtrending market people like us who are exposed to the markets ( me for one is always exposed as I believe in the markets) get som real returns on a selling like yesterday, now on stocks we are beaten but this strategy without any big noiseabout being short saves you from cleaners. That is what I call a bread and butter approach to investing, I got some good returns on a day when my portfolio took a smart beating, net I was down as my portfolio isl ower than the money I made on that call to go naked and cover my puts. Now for me this whole exercise is to help cushion my loss on the core, now on the other hand I picked up at the bottom some nice calls for simple reason I wanted to create a leverage and if the bottom would have given up for a day I would have had not suffered form the trade that much from lost of premiums only.. on volatile days and on extreme selling positions pick up calls and create leverage not stock as bottoms have the tendency to give up.. ''this can be different this time '' should always stay in back of your mind.. The pulling the trigger is always the art, we arein am essy market and without historical overview we would be unable to play this. Above 1382 on SPZ we may see a move to 1400 otherwise a interday 1339-48 on SPZ is perfectly possible even one day break that may take market to the lowof 1290 is doablein a panic, it is for this reason that i have written yesterday that once you pull your protection out at 1350 get in to 1300.. 50 points out. That is a dead protection sometime but very timely in case of disasters.. market would do what it will, we guys instead of getting whipsawed should keep our focus on turning points, keep highlighting the anamoloies of protection strategies and valuation. Signals are rampant, so is lot of talk, I think what we need to do is to try to give clear cut supports resistance, and blow out points, on that count we had a great day otherwise on net basis despite of everything the portfolio was hard hit, so those of us who have these core holdings and trade to protect them, we need to continue our efforts so that at rising from ashes we have some glory in our porfolios,, that is the objective. Keep on your efforts to bring the average price down.. so that portfolio recovers from the damage much earlier than the last levels where it was making money, this volatility has theability to do just that..