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: HairBall who wrote (56708)	10/30/1998 8:00:00 AM
From: Tundra	Respond to of 58727

LG, LOL. Even on the net, I can't seem to find that dang Antarctica market....grin Regards, tundra

To: HairBall who wrote (56708)	10/30/1998 8:18:00 AM
From: donald sew	Respond to of 58727

INDEX UPDATE ---------------------- Previously I had mentioned the divergence between the NAZ and the DOW, but after yesterday's performance the gap has narrowed. Per my short-term technicals, here are some approximate readings: 1) 85-95 range = NAZ,NDX,MSH,XCI,IIX,DRG,XAL,RUT 2) 60-75 range = DOW,SPX,OEX,BKX,XMI Over 80 is in the overbought region, and over 85 is in/close to CLASS SELL territory; upside is very limited. The 60-75 range is in the upper mid-range and still has about 1-3 days of upside. So the overall market, on average is approaching the overbought region. Since the HiTechs is that high, it could limit the upside of those indexes in the 60-75 range. So lets say that the DOW is up 100 points today, if the the HiTech indexes were lower, the DOW could be up 150-200. If the DOW does not exceed 8652, it would produce a LOWER HIGH, but we also need to keep in mind that the SPX has already equaled it previous peak of last week and will exceed it today, producing a HIGHER HIGH.The DRUG index is about 15 points of matching its all time high. The market internals have improved, but still not dramatically; however money is rotating to other sectors which is a significant positive for the market. The DOW is the weakest of the major indexes, which should not be surprising when 19 of the 30 components had decreasing earnings this quarter, per FIRST CALL. In light of this, I feel that the DOW,SPX,OEX could move up 1-2 more days; therefore I feel that the market should top off/dip on MON, and could start as early as today. I am not expecting this upcoming dip to be that large, but could retest the recent lows of this STAIRSTEP in the 8350 range. If the 8350 range holds for the forthcoming dip, I then suspect that the following upswing could take us to slightly HIGHER HIGHs(8700-8800 range). If the short-term top of this specific upswing does top off/start dipping near Monday, the downswing should last 3-6 days, which is targeting THUR/FRI of next week for the bottom. The futures are up strongly this morning(with FV calculated in). Darn should have gone with my BUY signal on the DOW, but the divergence between the NAZ and the DOW prompted me to play it safe. After the next dip I will be going long, unless the market significantly breaks the stairstep to the downside. Seeya