Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: ViperChick Secret Agent 006.9 who wrote (45954)	6/15/1998 10:19:00 PM
From: SE	Read Replies (1) \| Respond to of 58727

I have been examining charts of the OEX, SPX, SP8M, and INDU and to be quite honest the support levels we are breaking seem rather minor in retrospect. For example, the 1080 support is only a support because we bounced off of it three times, not because it was an area of consolidation on the way up. OEX is right at the same kind of support. INDU the same. In fact, the next support on the INDU is 8400 or so but the next major support is 8200. Major OEX would be 475 and SPX at 980. I expected to see the next support on the OEX, SPX and INDU at about the same percentages from current levels. However, OEX is at 502 or so about 4.2% from here. INDU at 8600 is 2.3% and SPX at 1070 is 2.5%. Don't know why the OEX is different, but it is interesting. If we continue to sell-off maybe that is the place to be. I think perhaps it is too early for a major dumping. Too many expectations of one. No sign at the top of major buying, although it can be argued, legitimately so I would think, on a rounding top that would not appear. I am beginning to think all we did is lower the bar of the cycles. The cycles have been 1080 to 1130 SPX, 520 to 545 OEX, and 8800 to 9200 INDU. If this downward spiral stops here, and I think it will...maybe another 50 points lower on the INDU, the new trading range, IMO will be: INDU 8600 to 9000 SPX 1075 to 1110 OEX 520 to 535 or so....a little lost on this one as it has not corrected like the rest.... This is contrary to an opinion I held earlier today that we would see either a strong down or up move. I though earlier the cycling was over, but I don't think so. Another couple of months maybe.....then the lower strong support levels shall be tested with gusto! Yes, all the above is a WAG! But why not? Thoughts???? -Scott

To: ViperChick Secret Agent 006.9 who wrote (45954)	6/15/1998 10:25:00 PM
From: Dwight E. Karlsen	Read Replies (2) \| Respond to of 58727

lisa, if someone sold Bay stock today, then they did get some benefit from the announced merger with NT. Since Bay didn't get close today to the $38.21 value of Friday's NT price (at .6 exchange rate), I have to assume that NT stock dropped today. From here on, NT and Bay will trade in tandem, or close to the .6 exchange ratio. There will be up to 1-1/2 points at times difference between what Bay "should" trade at based on the .6 ratio of NT, but that is due to arbitrage. The doubt factor, or some such.