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

To: steve susko who wrote (38722)	4/9/1998 8:56:00 AM
From: donald sew	Read Replies (2) \| Respond to of 58727

Steve, I'm not expecting a Black Monday whether or not the SPX drops more than 6 points. If the pullback continues, I have not change my position of the support area of 8750 on the DOW holding for this specific short-term pullback(1-3 more days). I had specifically predicted that the NAZ would pop yesterday, which it did, and on a intraday basis it was up as high as 16 (80 DOW points). I noticed the possibility of a technical delayed dip for the NAZ, meaning that such up movement would retrace either today or Monday and that it was an opportunity to purchase PUTS on the NAZ yesterday. If the NAZ was to move up strongly today(not just flat), it would be the first sign that this mini pullback is over, but would require further confirmation on Monday. If both the DOW and NAZ are up nicely (greater than 30 points), then that would be a technical sign that this pullback is over. If the overall market is flat, or the DOW is up but the NAZ is down, or vice versa, that would indicate that this pullback is still intact. If today is down overall then this pullback should end Monday. To avoid confusion, I consider a flat day as plus or minus 30 DOW points/ plus or minus 6 NAZ points/ plus or minus 4 SPX points. And lets say that the DOW is up 50 but the NAZ is down 5, I would consider that flat for the overall market due to the divergence. To further explain, a flat day, per those criteria would keep the technicals moving in the same bias as the previous day, unless it is in the oversold or overbought region. I hope I made some sense of my TA. As for today's action in the market, I am expecting it to be flat or slightly down(on a closing basis), per the criteria mentioned above; however the futures are up strong and the bonds are up so my technicals may be proven wrong, lets see.