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

To: Area51 who wrote (23387)	2/11/1999 12:09:00 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

Gary- Good Morning I would think that you must have shorted when NDX broke 1980 and not 1280, looking at yesterday's low we did hit 1923 on NDX or somewhere close, looking at the timing of your post I am surprised that despite of this move your positions were not making money.. I think you should recheck your fills with your broker.. SPX and SPH are symbols for cash and futures, futures trade at a premium to cash and are quoted off market hours on Globex. In a volatile market you may some time find futures trading below cash for some short time but it always adjust.. I see your concerns, for me I trade within my support and resistance's, reason being I have not been able to determine with surety a long term short play in a bull trend market. The reason I sell calls and buy puts is effectively to first hedge all my long positions above 1280 and second to make profit on shorting the long side and buying the short side in a volatile drop. Day before yesterday we were satisfactorily watching the market when this huge sell programme hit the market, we were just talking on the direction and the feed back was no follow thru, but immediately the pit broker interrupted and asked he has to leave, now as we watched the move we sold heavily collecting 181/2$ for 1280's and buying for 27and change long puts we were filled below 1236 SPH.. Yesterday morning although SPH was higher we covered our naked calls for 14 and change and covered the puts for 34 and change.. Now in a volatile move where we expect huge moves, I do this risky trade but this is only recommended if one has long positions one would like to hedge, a swift turn around can bankrupt someone doing this naked.. I enjoy it as it gives me that feel of shorting the market but at a distance and enjoying the incresed premiums of the long puts.. I remain a very much in between a range player, my posts of yesterday morning and many a mornings would suggest that for me my 1228 1210 and 1236.6 resistance will hold and provide me with opportunity to trade within a tight range.. It is the fear and greed that run's this markets in a volatile session, I have been informed by my sources that market plans to catch and trip a lot of people in a lethal move. what I make of this is that pits are long on supports with generous stp losses.. I see a good bounce in BKX from 746 support a positive and I would like that a close above 1950 on NDX will take us to 2000. on the other hand a break below 1211 on SPX takes us to 1188, so that range is pretty well defined I do see still a huge divergence in 50 days MA and 200 days MA on NDX and composite, but if this narrows down and 1920 on NDX is taken out I will looking to establish put spreads from below 1210.. that is selling a lower put and buying a higher put, at upper limits of market call and put strategy works at lower limit of my range it is put spread.. I would like to recommend long above 1236.30 and a short below 1218 on SPH for quick trade . I will cover at 1208 and expect market to rebound similarly I will expect once 1236 is taken out and we have a full 45 minutes session above that an assault to 392 on SOX, but it is all inter related right now I will exactly do what market wants to do. I don't really stand in front of markets and try to be on the side of momentum, as late a last night the pits are not sharing the conventional wisdom of huge break in the market, they are speaking of a small 'bhumbo' move.. I a not sure about this minor bhumbo, but I stick to my my plan, I will short and long in between my ranges and I think this is the best strategy for someone like me who looks at the market from a inter-related global perspective and inter sector relationships, this for me is a proprietary trading skill, not to the mark but if it works for number of years it has not to be ditched.. If my info is right I will go long above 1236 for ride to 1255 area if I am wrong I will cut below 1225.. on the other hand a short trade is already clearly explained, I will be watching DOT a break above 478 will confirm that 1950 break on NDX is not false.. Please ask me more clarifications, I wish I could be posting in the night during market hours but my life is very busy in my home country, first of all every night I have some friends or others inviting me for discourses on lighter side of life only to be interrupted by regular calls from NY, otherwise I sit and crack hundreds of new jokes by Khushwant Singh with my bosom buddies. If you ever have any question during market time please do not hesitate to call me at my mobile I will have no problem sharing the little I know. prefix will be 00 or 001 as the case may be... 92-300-552121, anytime until market closes ... I will be on air on CNBC ASIA on Monday talking about Pakistan stock market, see if you can watch..