Commentary--Lawrence McMillan for Thursday, September 7, 2000...
optionstrategist.com
Edited for ease of reading.
>>Stock Market:
The market is seemingly being pulled in different directions.
There are a number of ways to observe this:
...the NASDAQ and the Dow move in opposite directions most days;
...small cap indices such as Wilshire, Value Line, and Russell are going up while the S&P 500 is going down;
...the equity-only put-call ratios are generally giving opposite signals from our oscillators.
However you want to state it, it's impossible to say that "the market" is doing a particular thing you have to be specific as to what you're talking about.
One thing that is certain: volatility seems to be picking up.
The CBOE's Volatility Index ($VIX) made its low over a week ago, and as was demonstrated in the feature article in the last newsletter, bottoms that last 30 days in this index have proven to be springboards for large market moves in the past.
It's too soon, of course, to tell whether this bottom will last for 30 days, but it certainly seems so at this time.
If so, one would be better off trying to find straddles to buy rather than trying to sort out the conflicting indicators that attempt to predict "the market".<<< |
