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Jim,
I suspect that you are right about the market being up strongly tomorrow; at
least on the open. There was a good S & P rally on the close Friday, and the
futures are up tonight. That rally may have been just a short covering
rally. Some say that the buying was also partly due to the actions of a
government-business group officially called "Working Group on Financial
Markets". That group, the "Plunge Protection Team", was formed by business
and government leaders after the October, 1987 crash. Since then the group
has been drawing up contingency plans for the next market meltdown. Its
moment may have come. Ref: the N.Y.Post and the Washington Post. This
information is second had from the net, but it sounds reasonable to me.
Anyway, we can expect a good opening tomorrow. How long will the rally last?
The McCellan Oscillator indicates that it should last several days. That
doesn't mean that it will go straight up from Friday afternoon. Recently, the
opening trend has only been lasting an hour, or so. It is often followed by a
move in the opposite direction from the opening trend. This early reversal is
also often the dominant move of the day.
You have the right idea about buying otm puts. IMHO: I suggest several months
out; for insurance.
Larry P.[walkingman.gif (5600 bytes)] lol
http://www.decisionpoint.com/DailyCharts/McOsiSumCurrent.html
Guy Tann wrote:
> Jim
>
> While I haven't seen a bottoming out of the market, it did hit one of my
> support points and bounce up. Basis S&P futures, we could get a sizable
> move up and still be in a downward trending market.
>
> That's what makes this fun, trying to figure out where we're really going.
> I'm sort of looking for a correction back up to unload the rest of my dogs
> at this time and watch for an opportunity to buy some OTM Puts.
>
> Regards
>
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<BR>Jim,
<BR>I suspect that you are right about the market being up strongly tomorrow;
at least on the open. There was a good S & P rally on the close
Friday, and the futures are up tonight. That rally may have been
just a short covering rally. Some say that the buying was also partly
due to the actions of a government-business group officially called "Working
Group on Financial Markets". That group, the "Plunge Protection Team",
was formed by business and government leaders after the October, 1987 crash.
Since then the group has been drawing up contingency plans for the next
market meltdown. Its moment may have come. Ref: the N.Y.Post
and the Washington Post. This information is second had from the
net, but it sounds reasonable to me.
<P>Anyway, we can expect a good opening tomorrow. How long will the
rally last? The McCellan Oscillator indicates that it should last
several days. That doesn't mean that it will go straight up from
Friday afternoon. Recently, the opening trend has only been lasting
an hour, or so. It is often followed by a move in the opposite direction
from the opening trend. This early reversal is also often the dominant
move of the day.
<P>You have the right idea about buying otm puts. IMHO: I suggest
several months out; for insurance.
<BR>Larry P.<IMG SRC="cid:part2.35F4A570.B7DD5A79@xxxxxxxx"; ALT="walkingman.gif (5600 bytes)" BORDER=0 HEIGHT=30 WIDTH=30>
lol
<P>http://www.decisionpoint.com/DailyCharts/McOsiSumCurrent.html
<P>Guy Tann wrote:
<BLOCKQUOTE TYPE=CITE>Jim
<P>While I haven't seen a bottoming out of the market, it did hit one of
my
<BR>support points and bounce up. Basis S&P futures, we could
get a sizable
<BR>move up and still be in a downward trending market.
<P>That's what makes this fun, trying to figure out where we're really
going.
<BR>I'm sort of looking for a correction back up to unload the rest of
my dogs
<BR>at this time and watch for an opportunity to buy some OTM Puts.
<P>Regards
<BR> </BLOCKQUOTE>
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