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 (49238)	8/4/1998 6:37:00 PM
From: donald sew	Respond to of 58727

INDEX UPDATE --------------------------- The market should pop soon and it could be as soon as tomorrow. If we dont get a pop that would be a very bad sign for the market, and a strong signal that we will head lower and it could be alot lower. Not to confuse anyone, but I bought OEX AUG 565 CALLS for 1 9/16, playing for some sort of a pop in the next few days. My intent is to create a CREDIT SPREAD(bearish). Since I bought the 565 calls, Im hoping for a pop so I can sell the 560 calls for around $4.00 or better. Buying this call does not mean that I have turned bullish, just looking for as many ripples as possible. Here are some technical reasons for a short-term pop: 1) VIX spiked up and closed at 33 2) Strong spike up in the NEW LOWS - hinting of oversold 3) My short-term indicators calling for a CLASS 1 BUY 4) Strong increase in PUT buying Overall, I still remain bearish. Breaking the 8570 support line as convincingly as it did today is a very bad sign, strongly hinting that the market should go lower, and could go alot lower. Here are the next support lines in the DOW: 8406 WEAK 8346 MEDIUM 8238 WEAK 8073 MEDIUM 7740 STRONG 7643-7660 STRONG 7577 7350 STRONG I may have missed one or 2 support lines. This is the time to SELL THE RUNUP, PUT THE POP. Seeya

To: ViperChick Secret Agent 006.9 who wrote (49238)	8/4/1998 7:01:00 PM
From: SE	Respond to of 58727

I understood your point...but it is still possible to get out. It might have also been a trade to cut losses and reverse. When a dump comes like that one, SAR can be a very good move. Did that a few days ago and turned a 4 point loss (my largest I think) into a 1.20 winner. Also remember that the likelihood of being long at that point of time was remote at best. Today would have been a bad day to be long and nothing I saw indicated long. My indicators would have had me short for the dump, had I been watching at that point in time. Would have been a nice trade. But yes, your point is well taken. Would have hated being long during that stretch, no question. What a fun day. -Scott