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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: donald sew who wrote (33310)10/17/2000 10:10:42 PM
From: bobby beara  Read Replies (1) of 42787
 
8Note that the PUT:CALL ratio got to .89 today. The fear is coming back quickly and is a hint that a
bottom is not that far away.

Sew, one thing about sentiment indicators, which like all indicators, they must be put in perspective.

during 1994 the whole year saw put/call averages hover around .75, that bearish sentiment base was a launch for the current bull market of the late 90's.

stockcharts.com[L,A]DACLYYMY[DE][PA1!B200][VC60][IUB14!LA12,26,9]

the current 200 dma of put/calls is about .54 and is turning down from around the september top.

if we have put in a major top, which i believe we did on 9/1, we should see an unwinding of this bullish sentiment in a negative feedback loop that will surprise the bullz on the downside, the way the positive feedback loop surprised the bears on the upside.

b
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