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.

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

To: NickSE who wrote (22387)	1/8/1999 2:53:00 AM
From: IQBAL LATIF	Read Replies (4) \| Respond to of 50167

OSX and BKX in my opinion were classic picks at the historical bouncing points. We were bullish on BKX based on our reading that bounce off 799.4 is a bounce which goes back to two months and the resistance of 815 was my long resistance which the BKX sector was unable to take it out, now this 815 is my new solid support and the move yesterday was exactly in line with our expectations that once 815 is taken out we will see a explosive move up. If we look at SOX and go back to my posts we also highlighted the possibility of 401 if 330 is taken so it did we are nearly at our target. On BKX my target resistance is this area of 865-874 if I have two closes above 876 I will see BKX to attack the old high of 954, on the other hand a failure here will lead me to 815 test of support if that support does not hold I will like to reverse my strategy and try to do the opposite of what I have been doing so far that is instead of selling puts in a depressed sector I will like to buy 770 and sell 830's calls. However the support has to decisively taken out on two closing basis. On OSX which also is one of my core trading position the test at 49 was a good signal going back quite some time, it was held and when I read it with macro economic fundamentals in ME I thought this time around may be we see a jump, with the hand of God as cold front hit US we saw divine intervention taking the oils higher. I see slight resistance at 64 a big one at 70 but if I get 70 taken out I see above 73 a great trade again to 90 level. For me the strategy is to pick up my phenomenal return from this call at 70's level and get back in after a close at 72 is obtained twice, I entry at this point is more risky I have also moved my stop profit point to 57 on OSX. if it breaks intraday I will be out of OSX long calls, I will also check my daily levels with Oil prices which are key to OSX continued march - Oil as you know opens with a lag of 30 minutes although OSX is trading as thew market opens. The late Oil opening if we know what is happening with Brent gives us an opportunity to trade OSX between the index opening and the oil opening, if Oil is expected to open lower it is always a good idea to preposition oneself in shorting OSX or vice versa. I got out of my 1260 puts at 1271 during first half of the trading yesterday and bought them back at 1281 level and change, as SPH after initial volatility moved up unable to pierce thru the 1267 intraday support.For me the gap is still visible at 1260 although we had this distribution of funds into Banking and other sectors like Oils which saved the day for SPH.. I think long 1260's on rallies is good money and one always get a chance in this market to leg out of them..with decent returns on the other hand they also provide good insurance and a good hedge if we see a sudden move down. This is one advice I am dispensing quite a bit and hopefully will most likely come to bear great results.. Now coming to global realities the Brazilian debt issue is a point of concern for me, I will watch Brazil and its currency very carefully.. a weakness can lead to a sudden drop in BKX and I would be carefully watching this as my BKX long trade needs a careful attention..BOE cut the interest rates by a 1/4 percent point and I think 22nd FOMC meeting can be expected to cut again in light of NAPM number.. RUT is doing fine and I expect that to rally beyond my 427 target it is stuck their but I will like to see a break out here. As a departing note I sit here look back at my posts and my levels as early as Nov when I talked about 1750 on NDX 401 on SOX 850 on BKX 427 on RUT 401 on SOX and 1230 on SPH-- 230 on DDX all these and many others are right now in front of us, now as I move to more greener pastures nothing satisfies me more than seeing OSX making hell of 25% move within 5 days of my call or BKX bouncing off the 799.4 to 864 with five sessions of my prediction, in the end what matter is this these levels gives me only one indication that we have less of emotions and more of logic going in our strategies , it is this unique thing alone which keeps me glued to Idea thread. God bless every one and love from Pakistan to every one...