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

To: IQBAL LATIF who wrote (19148)	8/4/1998 5:08:00 PM
From: IQBAL LATIF	Respond to of 50167

With these news out--Now I would like to see how Ralph Campora and market will react next Monday- I think market will react positively to this, it is now considered as odd that we are not seeing the snap back rallies but within a range trading market and market finding its support and resistances it is normal to see this kind of activity- don't get carried away with the number a 75 point decline when DOW use to be at 2000 translates to a 300 point decline when DOW is at 8000-- why it should be so that a bull market should have one trajectory, this 16 year old bull is not here because few Japanese are not spending, or $ is strong it is here. ASEA takes 4% of US exports it is in a economic turmoil since June last when Thai Bhatt was targetted by the hedge funds, most of thse shorts today like me carrying hedged short positions are not selling this whole movement is future driven movement big hedge funds are trying to get the maximum theort this DOW theory if transportation goes down and we close 8560 is pure non-sense I had this number three weeks ago highlighted on this thread when transportation was much much higher-- half of these guys on the street have no idea why the market is here, DOW can perfectly move from here to even equivalent of 940 on SPU a still be within a bull trend like we had on 28th Of Oct when we did go down to 845. May be this fear may extend a bit more but a selling driven by fear and not fundmanetals has only one loser that is someone who panics, some big guys have huge short positions somewhere along either on Globex or market they would cover may be the catalyst is earnings or employment data butwhen they cover since no institutional buying has been asociated with this drop we will see a move up also fast, so even if your short play short spread with two to one --sell lower two strikes and buy one strike higher-- like 10202 and 10501---in case of a rally you will see the premiums on two wipe out much earlier in case of drop you have a thirty point protection-- it is a high risk trade and you can fine tune it in case of beaten down stocks also but you should be able to buy the stocks-- watch out for a second close below 8550 we go lower and test that 1050 area but like market has movements up similarly markets do move lower and this is not a bear movement.