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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Bull RidaH who wrote (34710)	12/1/1998 10:37:00 AM
From: SE	Read Replies (1) \| Respond to of 94695

At this point, yes, but the action today has me hesitant to the downside. I have a strong bullish divergence being set-up on the MACD one minute bars and if it comes to pass I will go long.

To: Bull RidaH who wrote (34710)	12/2/1998 12:01:00 PM
From: Death Sphincter	Respond to of 94695

David....re: if i was convinced of a significant longer term top having been reached, how to play? in the current case it would make sense to sell SPX calls that are right at the top.....so if i was totally convinced that,say, 1200 was the top....i would look at June 1200's to sell and collect the 16k in premium and hold them, this would be my primary play but not the whole wad....since you would expect a zigzagging down scenario to unfold over a long period of time, there would be numerous swings in both directions, i would be watching for very high percentage wave counts to play short term, and try to capitalize big time on the wave 3's down and the retracements.....i would play the really popular stronger companies, CSCO etc., with calls during retracements...and weaker companies with puts after retraces fail.....these stock plays would have to be fairly quick 'hit and run' attacks, as company options are always subject to short term "news" that can cause an unexpected move opposite the general direction of the market, I HATE IT WHEN THAT HAPPENS! you could also play the futures when you get a very high percentage wave count now that is easy for me to say, because it is all hypothetical..... being the snivelling, yellowbellied coward that I am, I am not prepared to make such a committment at this time carl