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

To: jjs_ynot who wrote (43827)	5/23/1998 7:31:00 PM
From: donald sew	Respond to of 58727

INDEX UPDATE ----------------------- >>>> The triangles appear to be getting tighter and tighter. How much longer can this type of action continue? Also, we have indices for various sectors (MSH, NAZ, IIX diverging substantially from the market as a whole). Do you see that this can continue for a long time? <<<<< Per my short-term technicals here are the positions of some of the indexes to show the divergence: DOW - MIDRANGE DRG - MIDRANGE OEX - UPPER MIDRANGE SPX - UPPER MIDRANGE BKX - CLASS 1 SELL HFX - CLASS 2 SELL CLASS 1 BUYS ------------- SOX XCI OSX XOI INTC AMAT NAZ (BORDERLINE) NDX (BORDERLINE) MSH (MORDERLINE) DELL (BORDERLINE) As a rule of thumb I do not play any CLASS BUYS unless the overall market is/near oversold, and vice versa for CLASS SELLS. With the HiTECHs being a CLASS BUY I would suspect that early next weak, as early as TUE, that they may pop to the upside, even if it is only intraday. When considering the technical underpinnings of the NAZ, just do not feel that any pop-up will have much follow thru and that the more appropriate strategy would be to sell the rally, or as Patrick and I said before - PP (PUT the POP) ggggggg. Concerning the triangles I believe that we are now at the APEX of very close to it. Normally it is only a matter of days before the DUMP or SURGE, and normally it is not small whatever direction it is. I checked the charts on CRUDE and it appears that it is bottoming and that CRUDE could pop next week. If it does that would not bode well for interest rates, which then should rise, which in-turn would be a negative for the market. Also the COMMODITIES (CRB) is severely oversold and was a CLASS 1 BUY on Friday and it did start to move up. The technicals now are very hard to read in light of the divergence, but I will give it a shot. TUE Intraday the NAZ could move up while the DOW indexs could pullback, then WED/THUR the overall market to continue down. If there is strong news to push interest rates up then it will simply be down accross the board with no pop in the NAZ. Seeya