To: Al Serrao who wrote (25651 ) 4/22/1999 11:40:00 PM From: IQBAL LATIF Respond to
Al-- I have been quite clear on this 'two days close' above a major level. It helps any investor to avoid a whipsaw. Few things are strange sometime people will come out and say short this thing below a certain point on short term a break of 1355 may lead to 1342 but on longer term trade horizon a short is only valid below 1292, that is something you need to have a two days close whereas 1355 break can be intraday thing and one can make some money. One needs to identify on many of these indexes interim points and support and resistance points the interim points are tradeable but a directional trade is only possible if huge support is taken out, you may have seen my trading on DOT as it slided I was taking benefit of all these interim points but was covering also although at 550 my insistance was tro have a break below 550 on two closing basis, that never really happened, we could add and we saw that the trap inthe last 15 minutes was very educating, they got this DOT down to 568 area and whipped it up in last 5 minutes to close above 586 the 50 dats maknig this one day close below 50 days ma invalid for nearly all the indexes. It is these fine points one should work on as we progress towards good trading. I remember on Monday during that last fifteen minutes many shorts were increasing their exposure on short side, thinking this is going down but nothing goes down below a support until it breaks. I am very pleased to see this turnaround and especially after a bounce off 1291 area, or 1980 on NDX I have been very clear that I will be short after close of 1292 on two closing basis, now we saw our levels we traded the level to 550 by selling DOT calls and added huge positions right at the low now the returns are also great but the fact remains that it is all discipline that makes one a better trader than the next guy. No one can ever pick bottoms and tops, with these interim R&S system and solid support identifiaction we cando that.
