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 : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (50245)	8/15/2002 6:32:08 PM
From: mishedlo	Respond to of 209892

QQQ has touched max pain during expiry week, every month this year but june. Oddly enough the only month that it closed above pain all year was may, right before the june slaughter. Now here we are. Second attempt to close above pain on the QQQ. Will this one lead to slaughter as well? March overshot (during the week by a full 2 QQQ points only to close down about 1 QQQ point if I recall correctly). The MFs shorted all they could at the top and let it tank. In fact it just kept tanking. No chance of a reversal like that tomorrow. The only question is this more like May where we tanked after expiry, or more like Nov where we took of like a MFer after expiry. In any case, da options boys made out like a bandit again. My best guess right now is that we close tomorrow just under QQQ 24. 23.98 for a guess. Just enough to send 200K of qqq 24 calls up in smoke. However Since almost all those calls were there over 1 week ago and the bid was over $1.2 as I recall, I am sure the option sellers will not do badly at any price under 25. That said, real money is involved on those options. Sure looks like my suggested straddle would have worked. I proposed selling the QQQ 24 puts and calls both and hedging against disaster by buying QQQ strike 26 calls and QQQ strike 22 PUTs. A close at 24 tomorrow would give a 100% gain on the play without a lot of risk, given the hedge. The sale of both the puts and calls would have netted $2 and the long buys would have cost $1. This is from recollection and may not be exact. M

To: patron_anejo_por_favor who wrote (50245)	8/15/2002 9:05:53 PM
From: UnBelievable	Read Replies (2) \| Respond to of 209892

We Be In Deep Do Do Especially since the Fed is out of rate cuts and the government is already running at a significant deficit. But I was as surprised at how quickly the SP00 man fixed up the mess they caused. There is really a lot of resources going into managing the markets. I have a spread sheet program the shows PREM and the comparable number for DJX and NDX which I display in Green when they are over the program buy value, and Red when they are under the program sell value. I did not have to look at the charts to see if the market was going up or down. When that Green came on it meant that the market had tried to go down. (Which was what happened whenever the green was not on). I guess the Fed has concluded that since, as they indicated in the statement yesterday, the recovery has been slow because of the poor performance of the market, that by making the market stronger they will be able to improve the recovery.