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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (64355)	5/9/2002 6:17:58 AM
From: Justa Werkenstiff	Respond to of 99280

M: Re: "damn - one must face the possibility as June max pain sinks, that there is no rally other than today." Tell me about it. Re: "If we overshoot however and keep rallying for 3 more weeks in 10 point moves with small pullbacks of 10 points occasionally we can limp around and slowly grind our way up into June expiry. Is that possible?" Anything is possible in this market I suppose. Yet Nasdaq has not stood still for that long. It moves as you know. But the action you propose will only create more bullish call buying I suspect which will limit upside. Wonder if that spreads into June to bring max pain down even more. Re: "Did this rally delay capitulation until July, or do we do the normal crapola on Wednesday of expiry week." So do we hang around here for a week then? No, a few days at most by my estimation as the market will not let the call buyers have their way for too long. They must be taken out to pasture sooner rather than later. If not, market will only encourage them to buy more calls which will, in turn, reduce max pain which will, in turn, bring down the rally potential. When is the last time we reached maximum pain in the week before expiry? I don't think that is the usual set-up for the past few months. Rahter, I think we have done the max pain rally starting no earlier thn the end of the week prior recently.