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

To: Roebear who wrote (19457)	8/23/1998 5:26:00 AM
From: IQBAL LATIF	Respond to of 50167

The way I think market works! An individual view. Roebear- I think the most important thing to do is to trade both sides of the market with effective plan- now 1055 1070 1118 1092 and all these levels like a story book and inter-relational co-ordination with laggards and global indexes is my own proprietary approaches- no one else posts them in a `story form' no one attempts to link them I try these things with a purpose to highlight the opportunities. I try to make things on this thread simple and clearer and I dedicate this thread to thousands of novice investors who get slaughtered day in day out by the extremes of the markets. What many don't see is that when huge number of stops are placed below a certain point it becomes very attractive to run those stops the volatility is essence of pit trader around which they make money. Why was it necessary to run 1054.80 within less than few minutes we were their and came back to 1064 area, it was to make the people short below 1060 are and than let them cover towards the end this happens every day in the future markets and no model will ever be able to predict the movements until model does not contain info from the pits as to where the major stops are for shorting the market or longing the market, the pit traders are always buyers at their price on Friday they bought first at 1080 on the open covered their longs by selling at 1074 area ran the stops at 1054.80 and ran it up, now all this action between 1074 and 1054.8 was noise we will not even see the intra day but market do things to slaughter the shorts, it is contrary moves that makes money if computers were suppose to make money some smart super computer would have been making all what is their in the pits, but it is human mind far superior to anything else which confounds these gurus every day as end of the day like Friday after thinking that they have they hedged their portfolios they have to lick their wounds by covering leading to more buying.. The outcry system and manipulation is two integral elements of our markets and we need to see that we should try to beat them we are arrayed against finest street wise minds we should think what they do that is only was if ` macro fundamentals or earning picture' is not changing. To steer through these markets one needs a global view and street wise wisdom integrated together. Alone portfolios will never improve your returns associate them with index trading and see the improvement. I know what happens in the pits they run stops, when I tell people `go long at supports' this is exactly I like to counter, they exactly play on fear and one needs to overcome fear, futures is one thing which I avoid posting but I assure you that these markets cannot be traded without a global approach and street wise wisdom, thinking like them is as important as knowing your markets. We need to have what I call a bird's eye view, in my short experience at SI, I have done two things first is to explain rationale of my thinking why I do what I do, and second is and open thread letting every one know who I am, this is in my opinion one hell of a important ingredient to let people know ''who you are''. I am ready for the credits and expect wrath for wrong calls- my aim is to hit between 70 -80 calls on the right side, to be honest with you my track record on SPX and SPZ is far more better. I am one of the rare commodities who will talk bullish on an extreme day, day in day out comments are not easy, one can make a bear call and disappear but I will make a call every day, rarely I will be absent to leave this thread un- chaperoned. Ofcourse, I realize due to high degree of correct directions made on this thread, this thread has `a -bearish' trend as such due to dominance of bears on SI, my views are not very popular as self- styled pro short professionals of SI like to see this whole thing sitting on 5200 to employ their money. They just don't seem to understand why the markets are here at first place ( my own beginning of this thread owes it to someone who was shorting CSCO and someone else who wanted to short IBM) the gurus who never invest a dime and stay short all the while, I know what pain it is to have a long put at 1050 on Friday at 24 and change it was nearly 6 big figure that I had staked in, however and I had no hesitation to cover on first bounce, to run a perpetual short is impossible and that is what I try to highlight get myself in the right kind of stocks and than work around my portfolio. Now I am running huge short 980's but I know I will make money out of it if I see market going down on Friday I will sell 1100 and buy 1040's and will cover the puts at a support with the naked call, however this can only happen when I am talking with pits and have the ability to be nimble. On Friday morning pits were buying at 1080 level, but I convinced Ray to go long puts at 1050 only because I thought that with Germany down 5% and change and Europe in bad shape the pits would need to cover their longs at lower levels--- although I covered my naked calls but I thought why to expose myself to double whammy if I can make money on the calls take the profits off the table and let my new position work for me. Over greed and overdrive is two things market punishes badly on that count I try to contain what I take from the shorts and don't try to skim them from two ends. I never went long on that day, their was no trade on that Friday afternoon for a long trade, because it was fear if any model on a day like Friday did not have any in-built system to see what happening globally that model would not give that move to 1055 and I was talking about this support back on 4th of Aug my levels tie up. Moreover if any model did not see how many shorts are lined up in a row below 1060 ready to be taken to a slaughter house like innocent sheep's that model could not have seen the re-bounce also. One of these days we will just pass they that level but my strategy would be to cover my longs on a rebound however since I chart the markets every day I know my points happy to post them and was delighted that Carey dig one out to show that even on Wednesday I forecasted that we will move down to 1070, like I think we will again try to teat 1130, my level the markets are in love with that level and would like to see if shorts go long above that.. I am a `move to move running commentator of the markets' and this is the reason I have one of the finest thread up here running smoothly, sometimes weeks pass by and no one makes any comments but on cross reference I am happy to be informed that it is one of the moderately followed one, I do take pride and work hard to get things right, I read- read and think - think and keep doing what I think is good for my myself and friends. Since it is my own money on line and I remain fully invested my bias is a well known fact. On Friday we overruled conventional wisdom of the pits that particular day and did very well-- I will keep posting my trades and my stocks and my love for technology as I think remaining fully invested in right kind of stocks will not hit your valuations at all since CSCO EMC MSFTS IBM don't move like crazy, on top of it all this short term trading is a bonus. When you do things with love you do them right. My read of the markets are not conventional neither do I have any interest to follow conventional stuff but my MA's. my trend-lines and my bands of prosperity and my inter-relational global indexes and foremost the macro economic fundamentals put all these together, just plain vanilla chart reading, you will have the best reading quite helpful to keep me on track. One doesn't need to be a rocket scientist using lingo which no one understands to explain the market, the school drop outs in the pits have their own games lets learn them to swim with the sharks. our reasoning and their tactics makes a explosive understanding of the markets. As I always say KEEP IT SIMPLE SILLY-