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

To: Jerry Olson who wrote (17609)	3/26/1998 2:45:00 PM
From: steve susko	Read Replies (1) \| Respond to of 50167

Unlike all the other indices, SOXX is the only one that is 25% below its all time high. For that reason, I think it will weather a retracement better than Dow or SPM.

To: Jerry Olson who wrote (17609)	3/26/1998 10:10:00 PM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

OJ-- If the market prospects for techs look so dim why INTC has timed purchase of 100 million shares at a time when market is about to break on the downside? They could by keeping quiet about this buy back and bought the stock much cheaper. I don't think they have any interest in propping up a stock which they know is going to go lower if going forward growth is weak. Second low expectations have already been built in the tech's market unlike SPX where market has prized and discounted most of the future earnings it may very well be buy the rumour sell the news SOX on the contrary sits on sell the rumour buy the news. One good development in techs which I would like your attention to be drawn is that despite of PRIA QNTM and others who pre-announced were not beaten so badly even COMS of NWX came 2 cent shy but stayed above supports. It is not that market has forgotten all about its tradition of taking no prisoner it may be that market realises that worst is already built in. I see your point about 250 on SOX but with SPM long puts you shall be protected on downside anyway if we go to that level for sure we would see a test of 1068 20 days moving average in such a case your long puts shall be handy but imagine even an outside chance that this divergence continues on SOX NWX DDX going long means that our long SPM puts will make money on broad market but specialised exposure will give dividends on the up side. The risk here is if if market keeps rallying until June you may loose all your put premiums but you know it well a market which will keep going higher will be on back of NWX DDX SOX and other laggards. Banking was a great buy at 690 but right now more than likely we may see a retracement it is going to come and you need to apply innovative spreads. Thanks for lending me your attention-- 'Sincerely yours Ike ggg'