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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (4390)	9/22/1998 9:45:00 AM
From: Tom Trader	Respond to of 44573

Hi Don--thanks for the link and your update I have come to place a great deal of credence on your technical reads of the market and to use it in conjunction with other indicators when trading the indexes. FYI, I have been trading the OEX by writing naked options using your updates especially when it comes to exiting positions and to some extent initiating positions---and it has worked very well indeed. If fact, I would recommend that anyone who has the required capital and the risk tolerance and discipline to trade the OEX options on the short side as opposed to the long side. Given that the premiums are so rich, there is a far greater chance of being successful though one is not going to be able to catch the real big winners--but we all know that is a rare event in any event. My system is now flat--it went flat yesterday at the 25+ level, as a result of the strength of the reversal yesterday. Awaiting the next signal whether a buy or sell. My sense is that for us to have another major down-turn in the market we will need to have some external event precipitate it. Otherwise we will remain in a trading range while building a base for the next move up. I am curious as to whether you have any system for calling intermediate term moves. For the first time in a long while, I am getting ready to commit some funds to the market for investment type positions with appropriate protection in each case, lest the market really tanks. When investing, one of the thngs that I ask myself is whether the downside risk exceeds the upside potential. For the first time in a while my subjective judgement is that we are at least at a point of equilibrium in that respect. No rush to invest -- but am looking for opportunities. My regards