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.

Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: TechTrader42 who wrote (8361)	6/1/2001 11:01:35 AM
From: Chris	Respond to of 52237

good question.. if you go by the "book", qqq (ie: the ndx) is in a range from 43.xx low to 51.xx high with my indicator on sell, it confirms this trading range action. Now, by the book, if it breaks the 43.xx support, then support is broken and "by the book" it means there is confirmation of a down move which would confirm that the actual trend is down (not flat as stated above). ---- Now, how to short? you can short on the break of support with a stop right abv broken support. im going to be a little cute and try to short right under the broken uptrend trendline (connect 4/4 low, 5/14 low and extend) just some thoughts. and that is hard part of trading. you can read all about chart patterns and indicators. OK. you read the whole bookshelf. Now, how to make money on the info/knowledge??

To: TechTrader42 who wrote (8361)	6/1/2001 11:04:45 AM
From: Chris	Respond to of 52237

im wary of shorting also because my longer term (ie weekly scale) is still on buy. again, im not a scalper. im looking for 6% gains minimum. ideal trade return 10-15% per trade

To: TechTrader42 who wrote (8361)	6/1/2001 12:34:48 PM
From: Raymond Duray	Read Replies (2) \| Respond to of 52237

Hi Brookelise, Re: It's odd to think of QQQ still overbought in the 44s, but that's what MACD seems to be saying. FWIW, I just received the following in an email from the "Options Strategist", Larry McMillan. Seems to be covering some of the same ground you're on..... Stock Market Sell signals have arrived. The oscillator generated a sell signal at Tuesday's close and the put-call ratios followed suit the same day. When a signal is fresh, there is always the chance that it will be false that numbers will be forthcoming the next day to negate it. However, that did not happen this week. In fact, Wednesday was an extremely negative (even oppressive) day. There were rumors that much of Wednesday's negativity was due to month-end window dressing (or "undressing") by institutions, but that is irrelevant as far as our technical indicators go. Thursday did manage to see the market rally back a bit, but it seemed to me to be struggling. In summary, I believe the rally that we had since the beginning of April is over, and lower prices lie on the immediate horizon. The weighted equity-only put-call ratio has turned up after drifting sideways for a couple of weeks. That is a sell signal, and it is confirmed by computer projections as well. Similar sell signals have been generated by the "normal" equity-only put-call ratio (and the breakdown of that ratio into its NYSE and NASD components), the weighted $OEX ratio, the NASDAQ-100 weighted ratio ($NDX) and the QQQ weighted ratio. The oscillator stands at +97.13 as of Thursday's close. It generated a sell signal when it fell below +180 last Tuesday. In addition, implied volatility has given a signal, too. $VIX has jumped up from 23 to 26, putting a bottom in place on the chart. That is a warning that the market will be volatile, and since we have these other sell signals, one would have to assume it's going to be volatile on the downside. As our final arbiter, though, we will use price as we usually do. By that I mean that one should not blindly short stocks or buy puts. Rather, one should look for stocks that are weakening and have fallen below established support levels. For example, IBM closed just below 112 today. That is right on the verge of a breakdown. Other major levels would be 44 for QQQ and 67 for Microsoft (MSFT). HTH, Ray :)