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: Steve Swanson who wrote (57858)	11/20/1998 12:20:00 PM
From: donald sew	Respond to of 58727

Steve, The VIX moves in reverse to the OEX. The VIX is a measure of what the market is willing to pay for OEX options. Its on the premise that as the market goes up the market is not as willing to pay that much for the options and vice-versa. The VIX broke a strong support line (24-25 range), which is actually a bullish signal. I believe that the lowest the VIX has been for the past year is in the 18 range. Seeya

To: Steve Swanson who wrote (57858)	11/20/1998 12:43:00 PM
From: donald sew	Read Replies (3) \| Respond to of 58727

INDEX UPDATE -------------------------- The NEW HIGHs are still below 100, and the DOW got to only 150 points from its all-time highs. When the DOW was running up above 9000 back in the spring, the NEW HIGHs were in the 250-350 range with spikes to 400. It has already been 6 weeks since 7500, and we have been in the 9000 range for a few weeks already. That is plenty of time for the NEW HIGHs to get over 100. For comparison, lets go back to the strong correction during OCT 1997. Within 6 days after that pullback, the NEW HIGHs returned to the 150 - THAT WAS IN 6, REPEAT 6 DAYS. Its now been 6 weeks and we are darn close enough to the all-time highs. This rally is definitely not the same as the one in the spring. Can the market go higher - maybe, but the probability is that, at best, we see a DOUBLE TOP formation if the DOW gets back to the 9300-9400 range. 9100 was a significant resistance line, which was broken significantly, and the next at 9200 which it bounced off of so far intraday. I have a question, and that is has a previous bear market ever formed a huge DOUBLE TOP, only to resume back into a bear market???? I believe the answer is no, but there could always be a first time. I have no technical signs that the market will retest the lows at 7400 but I do have alot of technical signs that we are at/near a short and mid-term TOP (yes it could get to 9300-9400). Seeya