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Stops tripped yesterday ... where to ???

  1. rembrandt

    5,816 Posts.

    Hmmm... no doubt the US market in 'resignation phase' following yet another scandal .. Quest Communications under criminal investigation by US Justice Debt ... 32% tanking just another log on the fire of corporate America ... and enough to trigger selling malaise ...

    NWS led modest 1.14% lower and NCP holding up well considering although down again ... stops triggered yesterday as upside failed Fib(23.6%) for the second time and most LONG would have exited ... those who entered early would have preserved modest green ... no shame in this.

    Reported Monday major July derivatives positions ranging between $11.00 (calls) and $10.00 (puts) and impending expiries could suffer under insto pressure to protect these ... resetting 26/07/02 for the August in the $11-$13.00 range give a hint.

    Bears always shorten their horizons to news at the moment and will fail to recognise 'resignation phase' of US market signals positive for bulls ...

    Recent LONG call for NCP was a good call ... and worth the effort to get set ... without negative US news ... most derivatives traders would now be close to a nice collect ...

    This IMHO along with US situation suggests NCP might be best viewed from the bench to clear July expiries and await market developments as the likelihood NCP will range as suggested above and NEUTRAL short-term in my view.

    This is not to say that NCP won't move either way, just that no signal either way given recent events ... alert watch between now and July expiry for next LONG entry ...

    Defence trading strategy .. early entries and tight stops ... no shame eating like chickens ... trading the bear is good practice.

    Chart looks like this...

    This is only my view ... read the red stuff.

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