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.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Riskmgmt who wrote (15831)	12/20/1997 10:21:00 AM
From: Terror	Read Replies (1) \| Respond to of 50167

Did anyone catch this weeks Wall Street Week. If so what was mentioned. We had our company party and had to miss it. With all the happened this week in the market.....Microsoft,,,,,Intc,,,,,,T,,,,,,Asian markets,,,,,, If anyone caught it please recap for the rest of us interested viewers. Will everyone be loading up on Intc in the 60's. I sure hope so. Marcie Thanks kindly

To: Riskmgmt who wrote (15831)	12/20/1997 11:13:00 PM
From: IQBAL LATIF	Read Replies (4) \| Respond to of 50167

Ray-strictly off topic- specific questions and some specific answers- I have noticed the open interest- this has never been a decisive factor for me rather a contarary indicator like bull bear ratio- will INTC go to 50 or will find support at 65-67 area open to interpretation in my opinion my investments call for safe stocks as core holdings I judge INTC as a stock for long term I will hold on to the stock rather would add on in my portfolio at 65 however I will keep reducing my carrying cost by trading index like SOX which if INTC takes out 67 will more then amply reward me- last one week was a great week on these low levels you need to have a very different strategy- like buying the nearer put and selling a farther strike 2 to 1- although it is highly risky but equally rewarding for example my trade was 230 puts shorts against 250 longs 2to 1 we covered one leg of this trade at SOX on 246.8 the put I purchased for 12 and change was sold for 18 and change I think it was Wednesday morning and we let the naked 230 run the SOX after testing 243 around closed up to 253 area. I wish I could have let this position run but on Thursday S&P around 968 decided to close out the naked put both the trades were good although one better then the other- now I don't know how to get out of my huge longs on long term basis that is not the kind of strategy we follow- I have seen all this bearishness before and open interest most of the time once short squeeze comes leads to painful short covering- if you ask me what strategy I will follow I have my targets like SOX 280 and 250 I was short from 280 and as sox TESTED 240's and change my view as that this is an important support of SOX at 240 look at the chart. Now look at SOX from 400 to 240 we are looking at steep decline and now go back to April July 96 charts of SOX you will find a lot of similarity when SOX declined from 305 to 139- for me 240 is a very strong support and you must have noticed that -go back to my postings btw 9th and 12th you will find that I have raised this question of one either SPA or SOX giving up- without SOX which is although not the tech itself but a good indicator of techs sentiments we will have difficulty in breaching 1000 SPA but you should take the cue from resiliance of the market- if lower supports are taken out with ease it is one thing- but water torture is absolutely some thing else imagine movement of SPA on Friday to 935 now I was early to cover my shorts on Friday at 946(on Thursady on close we established a position buying 950 and selling 990 SP options I covered around 10.30 in the morning on Friday NYT time - you will see a trade at 30 and 43/4). Soon after it moved up to 949 and then big slide but although it breached some critical levels we kept ourselve out of the market as SOX indicated no selling and was firm at 250 even when SPA was 935- markets is fluid stuff and one needs to be nimble I have noticed that it is expected that levels should be holy but once we write levels we need to see the ground realities. One of my favourite indicator is the swiftness of move I would rather ignore initial breach of a key support I will put on my strategy once the stops are comprehensively run- from time unknowns it is a known fact that stops are run and pits try to crucify anyone standing or betting agaisnt them. I expect although with massive drops of my favourite like TXN INTC and others that I will close the year very positive because I never let this sentiments of bearishness take me over- fundamentals will deal a heavy blow to all this pessimism but lets not stand in front of markets and let them move, my view is detach yourselve from your portfolio and hedge your positions independently I know of no fund manager who can go in and out of stocks so easily as it is shown on SI- yes few hundred shares are OKAY but if you are dumping 10000 shares of INTC and timing your move I find it difficult and absolutely a wateful execise I rather would help my position with index trading. On INTC and MSFT I see not much room on downside in SOX a 10 percent further decline takes SOX to 230 but I am veery interestingly watching some signs which indicate a kind of flattening interst in hitting the tech stocks but that said I will rather be going for spreads like 250 220 2 to one spreads then buying straight puts on SP my strategy is different I will expect a test of 930 area soon and even as low as 910-900 but I am very positive that a reversal of 260 point drop in face of Japanese 800 points on Friday was not a fluke- at 980 markets become dear but at 930 there is a lot of interest- MSFT and INTC at 110 and 58 in my wrong opinion may see much sharper decline in SP but not that much in SOX- I think we will and rather have seen 240 to hold even if SPA moves down to 910-900. Thanks Ray-