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

To: oexplayer who wrote (21284)	11/8/1998 4:24:00 PM
From: IQBAL LATIF	Respond to of 50167

I think I look at SOX independent of BKX, I have two objectives right now one is to be certain of the market direction and try to exploit any weakeness on the down side, second to work with indexes which will move up from here after making to or breaking new resistances. Composite looks great after taking 1771 it has never looked back however I would like that other than SPZ which can be quite trading sensitive these others signals should also keep giving confrimatory signals, on our way down I tried to learn the impact of secondary indexes on SPZ, you must have noticed that until CSCO INTC MSFT started breaking or the nifty fifty came under pressure the break below 850 even intraday never really came, like wise I would like to think that most of the nifty fifty are very near to their old highs so if we have to see a rally from here and as James Strauss has highlighted in comparison chart of RUT and S&P we need to see RUT leading the rallies from here, any rally only based on nifty fifty will be unsustainable. We need that this new interest rate enviornment to have broad market participation, like it use to be the case before 1996.. for me SOX BKX PSE RUT have assumed considerable importance as I think that very soon these indexes will help the investors in 'feeling good' this feel good factor will bring more money in the market-- as they receive month end statements. As you are well aware most of this Sept Oct sell off was limited to nifties otherwise an ordinary investor has seen a very weak return from the market as broad market had been weakening al thru the summer we had this rally in summer but it was limited to 300 stocks at the most otherwise the market as whole was underperforming, I hope I can be more clear it is this underperformers rally and feel good factor which shall bring more money in the market and shall fuel any future rally. To be sure I try to see if these underperformes have change their trait, are they ready to take the charge, in my view as we move forward with 402 275 192 on rut sox ddx tranportation health --we are effectively seeing stocks which have batterred all summer now stocks like FHS IFMX SEG move this would help the market forward in a very frim manner, if these stocks and indexes which are interest sensitive fail to move nothing will stop bringing this market down so it is for this reason I am going to give a lot of importance to these peripherals indexes, as you know I am expecting SOX DDX and BKX to take out the overhead resistances and move on to 330 215 850 area....a weakeness in these indexes will indicate to us a bit early that market momentum is slowing down... thanks I hope I am clear if not please ask---