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

To: Broken_Clock who wrote (57164)	11/7/1998 9:30:00 AM
From: donald sew	Read Replies (3) \| Respond to of 58727

INDEX UPDATE ----------------------- Most of the short-term technical indicators are severely overbought, but short-term indicators can stay overbought for extended periods. It is obvious that the momentum is strong, but tie that with this extended short-term overbought interim it is very hard to determine the top. The next major peak is at 9041(9091) for the DOW. There are huge number of short-term signals stating we are at/near a short-term top, and some sort of dip should occur. This dip could just take the form of flatness, as it did last week; however do feel that the forthcoming dip will be a bit more significant and should occur sometime next week, and as early as Monday. Not sure if this would be a tradeable dip with options. If the DOW drops to the 8500-8700, such would be a good opportunity to buy the dip to go long for the short-term, since the technicals are indicating at least a retest of the highs, if not higher. If a double-top does form after the next upswing, that would be the first strong hint of a mid-term top. I still feel that we are in a trading range, with the TOP near 9091, but with the current momentum supported by strong liquidity - anything can happen. Have noticed that some analysts have already started downgrading some HiTECH stocks/sectors on the basis of reaching valuations, so on a subjective basis such action is hinting that we should be nearing some sort of mid-term top. I am still away, just using my friends computor. seeya