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

To: TechTrader42 who wrote (34705)	4/23/2002 6:47:30 PM
From: ajtj99	Read Replies (1) \| Respond to of 52237

Brooke, my experience (not as extensive as yours) has been when a downtrend has just started and support is broken while indicators still show lots of downside potential, a further drop is usually forthcoming. The way I'm looking at this has a lot to do with the timing between option expiration weeks. Since it appears we've got a hard ceiling at NDX 1425 and COMP 1832, we need a bit more wiggle room to swing up and down before May expiration and Max Pain (currently 34-35 QQQ, or 1360-1400 NDX). That indicates to me we need to drop close to the Feb. 22 lows on the COMP (1696) in order to get confidence in a pseudo double bottom and the subsequent rally and short covering it should produce targeting Abby's Island. I'm surprised the CI's dropped so much on the SPX so quickly. The LT still are high, but the MT are really quite low on the SPX. There is lots of equity call buying, and the put/call was at a relatively high 0.69 today. This is not a number we see at bottoms. I think the call buyers could be whipsawed just to shake them into going into puts, which the MM's could leave behind on the rally.