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This short for one, has not seen any equity loss even during the last three
week run-up in the Nasdaq.
The broader market has fallen/ remained flat during this Nasdaq bear market
rally.
The Chicago Mercantile Exchange today said that the open interest on the
Nasdaq 100 mini-contract rose to a ninth consecutive record. This means the
boat is getting more and more lopsided, with small speculators long the
Nasdaq 100. Obviously, this doesn't mean that it will end instantaneously,
but it is a sign of emotion and enthusiasm. When the market does decide to
flip over, it could do so rather violently.
I am sleeping like a baby, short to the gills this market.
It is long overdue for its next leg down.
JT
----- Original Message -----
From: "Phil Lane" <patterntrader@xxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, June 16, 2000 6:17 AM
Subject: [RT] Re: S&P Bullish view
> well, I'm predicting the shorts will get hammered!
>
> the key is the volume and breadth - the market has been consolidating in a
> narrow range for nearly two weeks following the huge surge off the
bottom -
> if it was gonna crap out it would have by now - instead the "tone" has
> remained firm throughout. Also note that the the bearish sentiment has
> refused to decline during this period (at least for last week, don't know
> about this one). It seems like a perfect situation - if stocks had
continued
> to shoot up the rally would have been unsustainable. This little pause is
> allowing stocks to finish forming their individual basing patterns. Some
are
> outperforming - ones that were making new highs (and there weren't too
many)
> back on 5/24 when the reversal happened are doing exceptionally well. I
> believe I made a posting to this effect at the time. Might have been the
> O-list, I don't remember. My favorite pick was ADCT - it was barely
affected
> by the correction while most stocks were destroyed. I remember someone
> thought it was "overvalued". (Warning: This kind of thinking will lead you
> to buy stocks in downtrends!!!). Also went long the futures on 5/24.
> Increased 3 days later when the market followed through. And again on
6/13.
> Waiting for the next leg - meanwhile the boredom has been alleviated by
all
> the daytrader chatter on the RT list....
>
> rgds phil
> http://www.patterntrader.com
> disclaimer: Sometimes I'm dead wrong!!!!!
>
>
> ----- Original Message -----
> From: Michael Ferguson <wl7bdn@xxxxxxxxxxxxx>
> To: <patterntrader@xxxxxxxxxx>; <realtraders@xxxxxxxxxxxxxxx>
> Sent: Friday, June 16, 2000 5:45 AM
> Subject: Re: [RT] Re: S&P Bullish view
>
>
> > Or, a narrow sideways channel, butting up against resistance. The
question
> > is, are the longs or the shorts facing higher risk?
> >
> >
> > Michael
>
>
>
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