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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (34116)	1/26/1998 8:38:00 AM
From: donald sew	Read Replies (1) \| Respond to of 58727

INDEX UPDATE ----------------------- As previously indicated, the technicals are indicating 1-2 more down days and possible up reversal on Wed. This morning the S&P futures were down over 9, then it appears that when the Compaq/Digital news came out, the futures rose to only down around 2, now at 8:30 the futures are down around 5. The issue I am attempting to make that this market is now quite unpredictable; therefore take caution with any short-term option. On Friday the NAZ was very strong for the whole day in light of their technicals being severely overbought. It appears that the bulls and bears are now really having a battle on the trading floor. As I said before fundamentals/news over-ride technicals, and the news is really sending the technicals for a loop now. The only strategy which I may be comfortable at this time is a strangle/straddle, hoping for strong volitiliy/swings. It will hurt strangles if we have more day like Friday where the DOW only closed down 30 points, unless one was to play the intraday swing which was about 130-140 Dow points. Seeya