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: IQBAL LATIF who wrote (23005)	2/5/1999 1:19:00 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

The last time I posted I was concerned about 1292 test, we had intraday 1288 on SPH. Now with a review of techs and I am listening of pricing pressure on semis the markets leading indexes have turned sharply. These indicators were the one's that brought the market higher and continued weakness in these indicators will bring other indicators to break like DOW and DJT. Now. we have seen a huge drop in NDX and composite, for me this selling will continue if SOX and BKX takes out 392 and 772 that has been my long term support. I would think SOX 392 break will lead us to 360 on SOX. At these levels 'sell'gg recommendations from Kurlack are not going to help the tech sector too much, he was long on INTC at 125 he shot INTC at 138 great trade for a 13 point gain. From 60$ where he was short INTC he changed his mind at 125$ to go long now a reduction in next year numbers by 15 cents has brought the entire sector to good correction. I would think that with most of the splits coming thru like IBM and others one cannot overlook the possibility of a bounce off as close as 2390, this has been a lot of time during last two weeks a point of reversal but the quality of selling yesterday concerned me it looked like a 2200 composite type move or 1920 on NDX. I will like to trade short below 1252 on SPH, I would think we may see this level and 2390 on composite may also be tested but equally I believe these supports to hold. Once these are taken out I would like 2200 on composite to be tested that would take SPH to 1192 area and BKX may hit 750, SOX at that point will be at 360. Interim supports shall be 1228 and 1210 to go thru these supports we have to see 9200 taken out on DOW. I still think that 772 will hold only if that breaks on two closing basis I would think that we can go short below 1252 to do that look at SOX and BKX closely 392- 772 break will herald huge pressures on techs. I need to work with my levels, I see that market breadth indicates to me a possibility within a week a test of 1182 support on SPX but that is not going to happen until SOX breaks this 392 and BKX closes below 772 on two closing basis. Wednesday, Jan 27 1999 11:36PM ET Reply # of 23285 Nick <<supports sanctity are not be second guessed otherwise one get whipsawed>> I agree with your analysis I would think that 772 break will lead us to 750 or lower but the bounce will be equally strong...I have seen that markets bouncing from 200 days MA are good markets, lower interest rates my cut into BKX profits but activity in ASEA and Europe is robust and this will certainly help the BKX. In Oct we tested 690 if markets take out 1192 I would think that the investors will distribute their allocations into stocks likely to least hit, an index which is sitting at 200 days MA is less likely to suffer than an index which has yawning gap in 50 days and 200 days average like NDX. I concede that to fill that yawning gap between 50 days and 200 days on composite or NDX we need big selling..So 772 supports and NDX composite 1920 and 2320 are equally important points in this market.. I look at these points and try to corerlate to SPH... IQBAL LATIF on Jan 27 1999 11:16PM EST Yes If BKX does not hold at 772- we go much lower, however I think we will see a bounce off 772 and I also think that this is one point one needs to be most careful as not to be caught in the whip saw... I would rather wait for Nasdaq and Composite taking out the 2320 and 1920 if serious selling has to start. In the interim my trades would be like I proposed yesterday some straddled puts or straight puts below 1245 and to go long above 1264 area./. Internet mania after AOL today is unlikely to subside that would take the other composite and NDX stocks higher or firmer giving an arificially stronger look to the market... Below 792 remember my trade is to sell 840's and buy 750- I will like to cover these positions...Yes BKX alone can bring this party to ground along with transportation and SOX.. if BKX takes out 375 it can intra day slide to 350 within a week where it will be a screaming buy..I sometime thing that forecasting immediate intermediate and long term trends of the market on this thread makes markets look so darn easy but such is the activity orientation with my road map of the marekt I am able to work my plans and execution a little better than otherwise.. Traders on the other side of the desks in all those big houses know so little and are so ill prepared that anyone depending on them cannot expect to make a return.. You need to develop a road map and work on it.. However all of this bring me to this level of 1182-1192 on SPH which I think would be a buy and the market will turn from their higher, until underlying macro conditions change..Thanks for your regular update, I keep looking forward to your updates.