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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Byram who wrote (54604)	10/2/1998 9:42:00 AM
From: ViperChick Secret Agent 006.9	Read Replies (2) \| Respond to of 58727

So I did what any good SI member would do to relax and have a good laugh and get pacified - I went to "cat babe's" profile and looked & Listened... Thanks Lisa for the early morning pleasure..>>>>>> HA You never know what weird stuff will be up there....some stuff that is mailed to me from..ahem..certain people...is even too weird for me to put up ;-))))) well maybe not.....its probably that censorship worry +Electric (16215 ) From: +dennis michael patterson Friday, Oct 2 1998 6:47AM ET Reply # of 16230 ELECTRIC (and those long Dell). Read the follwing, first the bug picture then Dell. THE TECHNICAL REGISTER By Mr. Chartist October 2, 1998 RISING THREES: A DOOMSDAY FORECAST There is a Japanese Candlestick formation called "Rising Threes," which you may not find in most of the Candlestick textbooks. In a bear market, after a bearish candlestick, you will find three rising candles. The fifth candle will again be bearish. It is a five-candle pattern, perhaps the only such one in this charting technology. It forecasts a severe market downturn. The "Rising Threes" appropriately describes the condition of the DJIA and NASDAQ markets. Visit any website (such as www.bigcharts.com), which provides the candlestick option and pull up the weekly charts for the DJIA and NASDAQ. You will find a classic snapshot of the "Rising Threes" in both those indices. The philosophy behind the "Rising Threes" came from a military assault on Japanese rice paddies. Because rice is/was a precious commodity throughout Asia, one Japanese general sought to capture more rice land for his investment portfolio; he had to cross three rivers to capture the land. A burst past the third river would win his prize; a retreat after the third river would cause his failure. The DJIA and NASDAQ made it to the third river and were turned back. This is generally viewed as a major failure. The DJIA will have now failed for 11 consecutive weeks to close above the 9-week exponential moving average line. The NASDAQ now has a bearish engulfing reversal on its weekly chart. None of this is good news if you are a bull, or play the market long only. If you wish to survive, as a market player, or to profit in a down market, it is highly recommended you quickly learn how to short stocks, learn how to play equity puts or learn how to trade the indices. We may be in for a doozie of a decline. This is a quote from the September 23rd issue of The Technical Register: "If you are trading OEX calls or Dow Jones futures, you may wish to sit on the sidelines until a conclusive rally pierces the interim support level (8050) or a retreat breaks the 7750 support level. We are more concerned with daily closes than intraday probes above or below those levels, so watch our for head fakes." The DJIA closed below its 7750 support level on Thursday. The SS lines appear poised to cross/decline. It seems that the September rally has turned out to be nothing more than a month-long head fake. TECH STOCKS We hope you enjoyed playing the equity call and put options on Dell Computer (DELL). Our forecast that DELL would reverse above $68 was extremely accurate. We pointed out that DELL would get support at $60-$61. That occurred three days before Thursday's event - DELL found support at $60-1/8. Because of the speed with which DELL approached this $60 price target, we recommend you stay short on DELL until further notice. It may be possible that DELL may touch the $46 support level during October. Cisco Systems (CSCO) is the most troubled of the tech stocks we've been covering. Thursday's trading completed a bearish engulfing reversal on CSCO's rally. It is possible that CSCO might fall another $10-$18/share. For all intents and purposes, the CSCO rally is over. CSCO might see a bottom of $39/share. Intel (INTC) - we see a potential bottom of $74/share. Weekly Dark Cloud Cover. Microsoft (MSFT) also has completed a weekly dark cloud cover. Possible dip to $85/share.