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

To: J.T. who wrote (22372)	1/7/1999 3:33:00 AM
From: IQBAL LATIF	Respond to of 50167

This was my yesterday post which I was not able to post... Kerry-JT-Jeff OJ Karim -Kevin Ross -Thanks and everyone on the thread- due to scarcity of time in country as I get involved with many activities I will try to post a more concentrated post if I miss individual answers please overlook and do not consider it as a deliberate overlook. This is a very specialized market, if you are long the right stocks the one I have been highlighting during past few months, you will be doing just fine. Imagine I replaced my deep in money NOK.A's with- out of money 115's and they are now deep in money, although on one hand we took off a lot of cash off the table on the other I placed positions which are paying back nicely, it is for this that I have highlighted MSFT's INTC's LU's NOK.A's and DELL's, TXN's each time . I would think that lot of money is coming into these winners and naturally entry at these levels now is not without risk of a possible steep correction. 1260 for me is the resistance and if we break this our target would be 1350..a full 90 points from here however I will continue to replace my deep in the monies calls with out of the monies and keep investing in stocks RIG OSX index- although we did see a good run up we still think we are not out of the woods and need to work with exit on break of integral supports for me oil below 9.20$ is a recipe for disaster and hence I will be very careful..about Brent oil prices alongwith OSX.... I will like to move new March contract put straddles higher very near to the market and will keep these as integral part of my strategy to work at these levels.. as money keeps multiplying on out of money calls I will keep utilizing part of it on long puts... My sources advise me that the retreat from 1260 on Monday was not very helpful. However, the holding of support at 1227 on that day was good and the rebound was equally great. I indicated earlier the target on SOX is its all time highs of 401. If we break today the SPH 1260 resistance rather 1255 which has been a resistance for quite a number of days the stage is set for that eventual test of 401 on SOX. I would equally like to see BKX above 815 today and transportation keeping pace DOW break of old high of 9375 remains the final hurdle. Whatever little significance DOW has in this market move up from 1320 the fact remains that DOW break is more to do with psychology of the market and the sheepish following of this index by global community. DOW break is a must… I have seen 817 being tested but inability of BKX to close above this pivotal level concerns me little, I would like this to get going. The premiums on puts were great on Mon volatality and really got high providing us with the possibility of getting out of Jan's long SPH puts 1220's leaving behind the naked 1140's and 1160's short. I thought that if 1220 is taken out I will like to do something about those puts, I see 1130 support is a very good area and a major support of this market something like 900 of the previous 770 to 990 move. I think we will undoubtedly test it as earning season descends upon us, the market provides ample chance to trade and if we can keep a straddle strategy we will always make money. Like BKX on Mon is one example I had 770's of Jan's sold for 87/8 when I recommended the trade last Thursday. I closed that position on Monday afternoon as trading got ugly and BKX broke from 718 we got them back for 67/8 and 7$, yesterday as market picked up steam I was back in to sell at 73/8$ same number of puts, in process I made net 3/8 on movements of the market remaining perfectly within my risk parameters. NAPM weaker numbers are indicative of one problem that is slowdown in manufacturing activity, I took little heart in seeing thatexport numbers were picking up and I also noticed that inventories were not increasing the prices paid shoed trend of continous decline the number indicates that a further interest cut on 22nd FOMC meeting in light of slowing manufacturing sector is a possibility although a remote one , the deduction I will make is go long the RUT on this basis alone. Japan and China I would like to recommend Japan July 99 calls for JPN 145 index selling July 120's a risky trade but in my opinion a good one, I like SNE, Olympus and SoftBank as underlying equities these are my picks from Japanese wreckage. I am trying to buy stocks which are at lows and can see some new buying as the market picks up. I also think that Thai and Singapore will perform better than Asean markets. Don't forget a new cut in interest rate and a weaker $ is great for Asea and Latin America. bi for now --Love for everyone on the thread..