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: Dwight E. Karlsen who wrote (46958)	6/27/1998 8:45:00 AM
From: donald sew	Read Replies (3) \| Respond to of 58727

INDEX UPDATE -------------------- I spotted an anomaly, and that is with the VIX and OEX. Not sure what it means, but whenever I got anomalies in the past it normally not good. Last TUE the VIX went below 20 which previously was a normal SELL signal and was accurate. Just as a side note I initiate my PUT SPREAD at that time. Unfortunately instead of the market going down it exploded up. Now here's the abnormality - since the market exploded upwards the VIX would have normally continued down, but it did not and actually moved up a bit. This abnormality could be simply a failed SELL SIGNAL and the market will just continue up, but I am sensing that there is more to it than just a false signal - SOMETHING IS A BREWING. Right now, I am still in a quandry since Im in the middle of two different analysis - one calling for higher highs and the other calling for lower lows, as indicated in a previous index update. Subjectively - could we have seen the BLOW-OFF-TOP which many believe would be the signal for a correction. Yes I realise that the DOW is still about 400 points below its all-time high, but do many realise that the majority of the indexes including the major indexes have just set new highs in an explosive manner last week. Lets take the NDX and to compare it to the DOW, using the ratio of 6.77:1(DOW:NDX based on FRI's closing prices of 8945 and 1321). On 6/12 the NDX bottomed at 1158 and 8 days later(last THUR) it got to 1347, which was an extremely explosive move of 189 NDX points and using the ratio of 6.77 that could be compared to 1280 DOW points. I realise that an arguement is that the HiTECH sold off much worse than the DOW; nevertheless should this explosive move be discounted totally. Many of the other HiTech indexes and some of the DOW indexes followed a similar explosive nature within the past 2 weeks, not just the NDX which is heavily weighted by MSFT. Am I calling for the BIG KAHUNA - NO, but are LOWER LOWS possible, I think yes. Again, subjectively we are now at the end of the month and we could be going thru WINDOW DRESSING which could be what is skewing the technicals. By the way, even though the market was slightly up on Friday the market internals were still not improving, but were actually getting worse slightly. Just some food for thought. If I am correct on my lower low senerio - I still want a medal ggggggggggggggggggggggg Seeya all and have a nice weekend.