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Strategies & Market Trends : The Options Box -- Ignore unavailable to you. Want to Upgrade?

To: hobo who wrote (10427)	4/13/2001 3:27:11 PM
From: t2	Read Replies (1) \| Respond to of 10876

toscano, Thanks. I really appreciate it. One thing that interests me is when traders all see the same resistance levels and put out their shorts. One has to wonder what happens if it breaks through those levels; my feeling is that most will have stops at certain points and we get some massive rallies--propelled by buying, covering and going long by shorts----3 times the buying. I want to be able to pick those spots as I feel the trend is higher to the 2200 to 2500 levels--not sure where it stops. Of course the same applies on the downside. For now, I want to be able to take profits on calls at the next level of resistance--wait for a small pullback and go long again for the breakthrough. Just a short term trend I am going with on the Nasdaq. It helps to know where the "roadblocks" are. thanks again. ----------------- edit--Just read the post by John Pitera. Resistance in Nasdaq was at 1940 to 1950. I am betting many shorts were put at that level. Wondering what happens if the market breaks through 2000 Monday or Tuesday...it may become a buy signal for many TAs. Short covering and going long starts. Market breaks through the stops that are put in place by TAs. Really depends upon how much real buying is done by the funds or the retail "investors". That is the key--real buyers have to keep buying the market; otherwise those resistance levels will prove to be real. If the Naz goes up on Monday, my target level is 2100 believe it or not (by no later than Tuesday). Planning on dumping everything at that point and waiting for a 50 point drop before going long again.