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

To: James Strauss who wrote (23954)	3/3/1999 2:01:00 AM
From: IQBAL LATIF	Read Replies (3) \| Respond to of 50167

Steve and James...I think today's action would determine if 1228 support is valid, I have noticed that NDX/Composite based rally is not sustainable if Techs give up, however the problem is that NDX/Composite would have been lot worst if Internets/DOT would have not taken much of this fall brunt. With DOT sititng at 528 and BKX DTX RUT holding well I doubt SP99H can break a lot lower, may be a test of 1192 is possible but the real selling has to appear in DOT RUT BKX DTX for a major decline. One of the reason other than 1228 sanctity that led me not to leave long puts on SP99H was simply the showing on DOW just lost 27 points, for me I knew that it would never give ASEA a big sell signal. The decoupling of ASEA will also help market not to sell like mad as was the case earlier in Oct 98 and Oct 97, anyone trying to take a cue from ASEA would loose the target as in absence of big manipoulated hedge play the ASEAN markets are not subject to double paly any more. The double play where currencies were shorted to get the interest rates higher so as the the marekts skid are no more possible. So a lower opening in US does not anyway result in limit down opening next day, as ASEA is decoupled like Steve has rightly pointed out. ASEA huge foreign reserves and slow and steady GDP growth has provided ASEAN markets with some kind of support.I would still think that markets need consolidation at these levels, for a good trader this volatility provides excellent oportunities as premiums built up. I would like to work on my supports and resitance's and expect to take advantage of higher premuims. I agree with you totally that indices and ADL is showing a weakening marekt -as I have seen DDX and SOX retrating within few sessions big, but I also keep in mind that most of the earnings estimate may be possibly revised upwards..So for me it is important that DOW and other leading indicators should reflect that weakeness.