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Below is my mentors comments : I beg to differ with him completely. Im an
ignorant monkey so please humor me. I stand by what I said.
Regards
Rajesh
www.monkeyofthehill.com
Oct 20, 2000
Re : DJIA / NASDAQ
Both appear to have bottomed out. INDU looks poised to test the 11400 level
which is a c-wave of an a-b-c pattern which started at the top.
The NASDAQ needs to test the 4200 level. Again this is a c-wave of an a-b-c
pattern. But the fall after crossing the 4200 level will be dramatic. For
the first time the BSE has formed a pattern in tandem with the DJIA /
NASDAQ. The BSE also appears to have bottomed out and should cross the 5059
level. All the upward movements of these 3 indices under discussion will be
5-wave patterns as they are c-waves.
Ciao for now
Joe Duffy wrote:
> Since were only talking about opinions here, I'll throw my thoughts in. It
> "feels" to me very, very much like October 1998 at the bottom in both SP and
> Nasdaq. I think the low is in personally. I am considering a strategy of
> selling puts on the SP futures with a strike below the recent low, and
> simulataneously selling calls on the SP futures with a strike around the
> recent highs or a bit lower. I think that we are likely to see trade
> increasingly less volatile and more in a trading range for the next few
> weeks. If we did break lower I would cover the short puts and hopefully
> cover off most of that loss by staying short the calls. But really, I think
> it stays in the range, so that I will profit on both sides of the equation.
> When implieds are this high, it is the time to do this type of strategy.
>
> As well, especially on an intraday basis, I would also be looking for
> increasing tendancy toward false breakouts, on say a 5 minute chart.
>
> ----- Original Message -----
> From: neo <neo1@xxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Sent: Friday, October 20, 2000 7:44 AM
> Subject: RE: Nasdaq to 1800
>
> > The 200 day MA has turned down and that is a strong sign of a bear market.
> > That does not mean we will not get the Nov-Jan upturn. The big questions
> are
> > still out:if and when?
> >
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