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In a message dated 98-08-20 02:18:49 EDT, deltaforce@xxxxxxxxxxxxx writes:
<<
As you see in my e-name, I AM into the "Delta-Beta" stuff. A good way of
thinking about options (especially OEX options) is that the closer to ATM
(At-The-Money) or deeper ITM (In-The-Money) the option is, the more
HORSEPOWER and higher OCTANE it has. The farther OTM (Out-of-The-Money) it
is, the more immature and weak it is. >>
Dave,
You make an excellent point.
I have added a x-bar chart to this post since it has been a while since i
posted one. Trust everyone who has been using the indicators made $$ on the
downside.
My last post indicated we would be looking for a break of the indicator trend
lines to identify that at least a temp bottom was in place for a tradeable
rally. That has obviously happened.
Today's chart shows us in an area of significant resistence as we bumb up
against an old trend line from June, and the downward sloping x-bar channels.
In addition, we are seeing a lot of energy having been expended to make "the
turn" as the Linslope indictors are at extreme values.
A pullback to 530 on the OEX at this point prior to August expiration would
not be a surprise. Those of you with Long OEX options might want to bank some
profits at this point. The more aggresive among us might try a scalp down to
the 530 support area.
Good Luck,
Terry
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