Replies to post #13120 on Profunds index and sector trading (PRO)

[otraque]

thanks as always for your input AI.WL.

[sd]

Oh do I hope you are right seeing as I am over extended in USPIX (an ultra short NASDAQ fund) but as I read Sharp Charts on the NASDAQ it closed at 1970 and the 200 day simple MA is 1967.67. It did close below the 50 day (1979.46) Maybe that is close enough for Govt Work.

I hang on your every post.

[Z-M-L]

Raising STOP LOSS on the NDX from 1508 to 1520 for the next few days.

Have to allow that Wave-(c) [since the May LOW] of the (a)-(b)-(c) correction [since the March LOW] is itself a twenty-one (21) FIB trading day movement. We just completed day nineteen, and have to allow for today's rally the start of Wave-v of (c).

The "boys" may hold the market up at these levels for the next few days in order to Expire the HUGE Open Interest worthless.

[Z-M-L]

On Tuesday the NDX “GAP Opened” higher and peaked at 1487.83 , before pulling back a bit into the close. The equivalent level reached for the QQQ was 36.99 when the NDX reached 1487.83. Today the markets chopped around in a very tight trading range, with the QQQ closing at 36.73. It is NOW very clear to me that the “boys” are NOT holding the HUGE Option Open Interest in BOTH the PUTS (south of 36) and the CALLS (north of 37). If fact, the “boys” SOLD all these contracts and will have a BIG PAY DAY by making sure the QQQ (and the NDX which the QQQ is based upon) “closes” between $37.00 and $36.00 on this Friday; thereby making the HUGE Open Interest (which the “boys” pocketed the premiums) expire WORTHLESS.

Here is the QQQ Open Interest as of today’s close in the June QQQ:

PUTS

Strike 36………279,548 contracts
Strike 35………488,395 contracts
Strike 34………357,203 contracts
Strike 33………343,136 contracts
Strike 32………155,026 contracts

CALLS

Strike 37……….233,246 contracts
Strike 38……….189,058 contracts

By closing the QQQ between the price of 36 and 37 on this Friday, Expiration Day, the “boys” retain a HUGE PROFIT. So expect more of the SAME choppy action, like we had today, into Friday’s close. After which the market’s TRUE and PRIMARY Trend will emerge. The “boys” are in COMPLETE CONTROL!!!

I am keeping my STOP LOSS at 1520 in the NDX for the next few days.

Currently, I have a position in the Rydex Venture (RYVNX) Fund, established on 04/12/04 at $24.92, within the Aggressive Portion of the portfolio; while the Conservative Portion of the portfolio has been in Cash or Cash equivalents since 01/02/04.