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Jeff Bailey : 2/6/2006 1:12:23 AM

E-Mini NASDAQ / QQQQ Montage at this Link

Jeff Bailey : 2/6/2006 12:52:55 AM

QQQQ Daily interval bar chart montage. Conventional high/low close retracement on top with MONTHLY/WEEKLY Pivot Retracement on bottom at this Link

Weekly S1 $40.36 and WEEKLY R1 $41.90.

Jeff Bailey : 2/6/2006 12:05:12 AM

Updated Pivot Matrix for next week as well as a "what to look for" in Sunday's Market Monitor Link

Jeff Bailey : 2/6/2006 12:04:04 AM

Program Trading levels for Monday ... HL Camp & Company has their computers set for program buying at $+3.86 and set for program selling at $+1.64.

OI Technical Staff : 2/5/2006 9:59:59 PM

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Jeff Bailey : 2/5/2006 5:51:20 PM

QQQQ Option Montage Friday close at this Link ... I've also been tracking the QQQQ Feb $40 Put (QQQ-NN) as a possible covered put against the currently long March $43 Put (QQQ-OQ), but would only want to sell the Feb $40s for $0.85 or better.

Friday's most active QQQQ options were the Feb 41 Puts (74,568:411,324), Feb $42 Puts (56,448:211,494), Mar $41 Puts (49,474:160,003), Feb $42 Calls (22,665:199,691)

Jeff Bailey : 2/5/2006 5:20:08 PM

Pivot Matrix for next week at this Link

Late Friday I alerted NDX/QQQQ traders of a "triple correlation" at the $40.35 level for the QQQQ. In my mind, this becomes a destiny trade this week and a key level of support.

During Friday's session we saw BULLISH DIVERGENCE as the VIX.X and VXN.X both trended lower (call buying and/or put selling) after the open, yet the major equity indices also trended lower. It has been my observation the past two years that when the VIX.X gets to 14 or above, we see trader successfully selling premium and an eventual bounce in equities. As it relates to my current long QQQQ Mar $43 Put (QQQ-OQ) play, I would really want to see the VIX.X hold above WEEKLY Pivot early this week, then get a bounce (call selling and/or put buying) where VIX.X rises to/toward WEEKLY R2, with WEEKLY R1 at a minimum.

Now. After a profitable trade in the RKH (tie with BIX.X in Pivot Matrix) and accurate monitoring of the yield curve spread, the 10-year YIELD within the matrix, as well as the BIX.X will be telling, even for the QQQQ in my opinion. Note the correlative BIX.X WEEKLY R1/MONTHLY Pivot. In my opinion, BIX.X strength much above there is too bullish and would most likely trigger broader market strength. Note the BIX.X currently leads weakness in the MONTHLY Matrix.

For a long holder of QQQQ Puts, we don't want to see the 10-year yield (TNX.X) much above its weekly Pivot. Why you might ask? What comes to my mind is that a 10-year yield above weekly pivot, could have the yield curve steepening. After trading the Regional Bank HOLDRs (RKH) for a profit as the curve steepened, we should have a pretty good idea that steepening would only come from the longer-dated maturities. For the TNX.X, early YIELD resistance is WEEKLY Pivot.

Correlative resistance at DIA WEEKLY Pivot/Monthly Pivot and SPY WEEKLY Pivot/MONTHLY Pivot.

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