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

To: donald sew who wrote (44206)	6/1/1998 11:26:00 AM
From: Patrick Slevin	Respond to of 58727

I like the spoos to fail in the same range....between 1104 and 1110. Probably the low end of that range. Logic is, it would continue the declining tops pattern. The FV is below $3, so the SPX would be less than 3 bucks, on average, below the spoos. My rationale for being uneasy with Inger's intraday calls is because he places reverse stops too tight and whip-saws anyone who pays attention while we are in sideways markets such as this. Example. Today he had his clients go long @ 1195 basis the SP8M. Using a 3 point trailing reverse, the market got to 1197.40, then dropped to 1194.30 - So now they are short with a 0.60 point (or more) loss. A 3 point trailing reverse on that, and they were taken long again @ 1197.30 - So now they are long with a 2.90 loss (or more)....a total of 3.50 points. Thje high since has been 1098, so they (if they are still paying heed) will be short if it drops to 1195 for another 2.30 loss (or more). This, is not intraday trading. This, is a guy who is a position trader trying to "find" a trend intraday where a trend has not yet been established. For my own part I'm flat. I expect a turn by 11:15 ET and (if it appears to have a bias to the downside) will sell there. I won't trade the upside. Not comfortable with it at this juncture. As far as interest rates are concerned, I think the market is looking for any excuse to move up. As I type I see the bond is recovering ... over the past couple of weeks the Banks and spoos have run counter to the bond intraday with respect to direction. In any event, the market may be just recovering because of the lack of important, negative news. Anyway....it seems like a replay of Thursday, which "set-up" the market for a nice short sale Friday. Perhaps tomorrow could help out the short side.