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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (46441)	7/19/2002 4:00:15 PM
From: AllansAlias	Read Replies (1) \| Respond to of 209892

I didn't say we couldn't get a bounce. Sure. Bounce it.

To: yard_man who wrote (46441)	7/19/2002 4:00:44 PM
From: AllansAlias	Read Replies (4) \| Respond to of 209892

Dow closes at 7xxx. Got nightly news lead story?

To: yard_man who wrote (46441)	7/20/2002 3:27:16 PM
From: UnBelievable	Read Replies (1) \| Respond to of 209892

At This Point The Boyz Have To Figure Out What A Bounce Is Going To Cost As soon as there are more longs selling the bounce than there are shorts covering, a bounce becomes problematic. A bounce means letting the people who are cashing out, cash out at higher prices. Two words seldom used in the same sentance are Bankster and Generosity. And it is not clear if the brave Ameritraders have enough money to pay for a bounce. Ordinarily there would be an options related impetus for a bounce. The week after options expiration tends to trend in the opposite direction as the week before. The reason for this is that the owners of in the money options tend to close the equity position that the option created. Since last week was weak most of the in the money options were puts. This means anyone who did not sell the option before the close will be put the option shares and on Monday they will be short the shares that they have been put. Most option holders do not maintain the short positions which have been created (usually the margin requirements for the amount of stock they have been put is far in excess of their available equity and they essentially (actually) receive a margin call) so they buy to cover. The boyz are well aware of this and help get the ball rolling for this the counter trend effect. This time may be different. <gg> If faced with a bounce on Monday the people who have had short positions created, may choose to hold the position open and wait until the bounce is over. Unless the boyz are confident that they can create at least a three day bounce they may be reluctant in investing the necessary money to try. And since many of the margin calls on the longs were not created Friday the selling on the part of longs to meet their calls may dominate.