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

To: Chris who wrote (4059)	12/7/1997 12:13:00 PM
From: Chris	Respond to of 42787

good morn: Subject: Tech Stock Options \| Previous \| ------ \| Respond \| To: j g cordes (30557 ) From: donald sew Sunday, Dec 7 1997 9:54AM EST Reply # of 30558 INDEX UPDATE ----------------------- I have been working on my GUITAR calculations, and the strong indication is that the overall market will remain strong and either continue to move up or remain flat. There reason I also stated flat is because many/most of the NON-HITECH indexes have already reached new highs recently and the DOW is also very close. My short term and mid-term analysis is limited when the market is setting new highs, simply based on the fact that those indicators used in such sub-systems are based on histrorical data, and once new highs are set, its new territory with no history. Since my GUITAR is not based on historical data, I have some faith in those calculations to assist to determine market action at new highs. Such calculations are indicating that the lagging indexes such as the SOX and DDX will attempt to play catch-up. I am not saying that they will return to their highs, but will say that they will be setting higher highs and higher lows as it moves up. I have pushed my guitar analysis, expirimental stage & and still testing, to say that by the end of DEC early Jan the SOX should be in the 320 range and possibly higher. Please understand that this type of prediction per my guitar is in test stages. In light of such I am now looking for the right buy-in point and risk-reward ratio to get into the SOX with Jan calls. As for the immediate future, early next week, almost the whole market is overbought per my short-term technicals. Yep, even the NASDAQ COMP. There are only a few indexes which are not overbought IE: XCI,IIX but they are already approaching overbought range. Now the SOX and DDX are big laggers, still in the lower mid-range near the oversold region. The market movement probability is in favor of flatness or slight pull-back, at least intraday. In terms of flatness, to me that means plus or minus 30 points in the DOW. If there is any pullback in the DOW it should stay in the 50-100 points on a closing basis. Happy trading. OH, watch the SOX - if the DOW dips and the SOX holds,that will be a signal that the SOX will be heading in the right direction.