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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (4268)	7/27/2002 8:26:21 AM
From: Lone Ranger	Respond to of 30712

Justa, Thanks for your thought process for why the comp(ndx) has not bottomed. I agree with no long term bottom. But like you say, they may be able to paint this until options expiration. I ve read on some threads that some short term technical indicators became positive at the middle of last week and that some people have entered funds similar to velocity. But we were so oversold that a relief rally of a few weeks is not out of the question. But, like you, I don't believe we have final resolution. The squeezorama just relieved a little pressure, but the temperature is still rising.

To: Justa Werkenstiff who wrote (4268)	7/27/2002 10:40:03 AM
From: Killswitch	Respond to of 30712

I agree the max pain issue is worrying, but if you look back at the 9/11 bottom the Naz and SOX behaved in similar ways as now (Naz made multiday triangle and broke upwards, SOX was weak). Near the end of Friday both the Naz and MSFT broke upwards out of the triangles. We have time until August max pain comes into play, and if people start buying puts more heavily it can rise.

To: Justa Werkenstiff who wrote (4268)	7/27/2002 10:46:57 AM
From: Killswitch	Respond to of 30712

Two other things: On Friday the SOX broke down out of a falling wedge intraday yet then held strong well above 300 and then reversed to the upside. I think that action was bullish. Second, the flagpole leading into that Naz triangle is about 175 points long. If we reverse the breakout we had at the end of Friday and go downwards out of the pattern that would be calling for a move to as low as 1050 which while possible, I think is unlikely barring some significant external shock event.