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.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (19024)	7/23/1998 7:20:00 PM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

This was my opinion today--'In my opinion if we see DOW closing below 9162-9170 area we go and test 9123 and if we break that 9000-- my bias is that we are right now testing lows to go higher.I will see that 9123 will be held, on composite 1976 is a area of resistance.'We did test 9123 an went thru straight to break 9000-- my bias of successful test of lows turned out to be break of lows- but it was SOX which stayed very firm and stocks like INTC CSCO EMC rather closed firmer the selling being concentrated in drugs and BKX-- After the close GTW earnings were quite short of First call analyst expectations but we have seen that MSFT 98 delays did affect earlier months sales of the second quarter and it was reported that June month momentum is expected to be maintained-- I would think that if JPN stays above 16200 we may see that composite 1138 level may intitally go down to 1932 the first important support above 1921-- this will translate to 552 on OEX and 1132 on SPX-- looking at transportation I see the next support at 3364 and 287 on utilities-- I would think that industrials first resistance is 8982 and the second 9123-- a break below present levels can take industrials to 8806-that may translate to 1918-20 area a very important resistance on SPX. The rotation of money if you see PSE and SOX they are down 1.19% or 1.87% against 2.2% for composite-some sectors are taking a bigger beating than others-- it is not a broad based sell off- This is important to know and follow where the new money has started flowing or will flow. We may see money going in stocks where earnings have been strong and analyst have issued new buys or raised opinions it was this today that we saw Northern telecom nearly stable Qlcom Northern Telecom Asnd with very few exceptions showed good resiliance to the market.I wil keep a close eye on my bellweathers and will like to only close my 1140 puts intitated on break of 1153 today if composite move back above 1955 a full 20 point from here otherwise I keep my position hedged until visibility is more clear-- I will like to sell against my 1140's long puts some out of moneies 1090's and lock some premiums if 1132 SPX is tested. I would be expecting that market will turn from that point and I will be able to leg out of my long puts above 1155 and let the short 1090 run until expiry.