To: Area51 who wrote (21274 ) 11/6/1998 3:09:00 AM From: IQBAL LATIF Respond to
Gary I trade ATML off SOX. Just keep a close watch on the SOX, if we are unable to take out 275 we will go back to 242 level. I would like to out of semis if 242 is taken out, I will keep a generous margin but one can also take a cue from composite 1810 break that shall happen on SOX 255 one can be out, for me like 1080 break was considered by every one as a point of consolidation and I was very clear in my projections when you two closing highs you have momentum on your side, sky is the limit....here.. I will cautiously looking at bonds the new thing is as bonds will sell markets will initially weaken but will come back up this will be new trait of the market, bonds will only sell on strong numbers and strong numbers will be good for corporate earnings, market will sell as bonds selling will indicate no price cut but it will come back as market was priced for close outs, so it is going to be a war.. I would like three indexes to be closely watched now composite 1810 BKX overhead resistance of 800 and OEX 555 resistance, SOX and PSE 275 resistance and 345 support..I will daily not look at Japan 14200 support and 14700 reistance also in Europe France 3600 and DAX 4800 alongwith FTSE.. Iti s only thru corelations one can find the bottom and the top-- as far ascharts are concerned it shows if it closes above 1130 a breakout on breakout you just don't short likewise bottoms appear as most disgusting but it is corelation you long the bottoms.. for me it is important to watch for signs which others miss due to obvious reasons either of lack of knowledge of broad market macro economics or too much inherent pessimism, I am called a bull that is very wrong for me I would consider my self as a person who likes to trade market on both sides, I am loking at my supports and resistances I am not looking at adding positions here I have my profits to protect so for me I pull the trigger a little early now, howevr there no such thing as instant gratification many a late entrants are looking for that what astonishes me is that accompora 6300 was seen a missed either he was sleeping or he has no idea about corelations, like read composite if you want to see SPZ I know there is divergence but broad move will lead to narrow move on the DOW.. DOW is within 400 or less than 5% from its highs whereas composite is well below 14% still to reach its previous highs,at intermediate levels once we were long at 1320 we fixed our target as 1130- now this is a great support we will see a lot of back and forth movement from here but that huge break was once in a year opportunity, now we only get it if market abuses its up side and that means 10000 on DOW we can than easily see 910 again-- if you lok at this whole correction you will see 625 750 850 as important supports every time within a bull leg correction we have not see a low breaking previous bull leg low like 850 was not broken on two closing basis although intraday we went much lower 850 was low of Oct 97 correction, like wise are similar lows..Here we are again, who is right or wrong does not matter anymore - one thing only I am cautiously adding as we move forward some March contracts that is the best you can do to sleep well, use your profits to hedge yourselves- do that now before your profits evaporate, I use as high as 10% for my insurance, there is no reason for a reasonable account not to have some kind of protection.. it was foolish to add puts ar 1320 like our dear gurus were suggesting or as recently suggesting to short around 1080 again so for me if profits need to be protected we need to use some profits to hedge and not to worry.. Nice to hear you are doing well with ATML-- whatever these guys tell you if this is a small cap rally we will not see it fading with one or two interest rates.
