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

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To: AllansAlias who wrote (3143)3/16/2001 9:22:29 AM
From: Paul Shread  Read Replies (3) of 52237
 
Allan,

What struck me was that traders are 2-1 bearish on the Dow and 2-1 bullish on the NDX. Whichever way the indexes go, the Dow may outperform yet again. It's possible there are other conclusions to draw from that, like the Dow had been in a range for so long that everyone knew when it broke down. But there's a lot more upside fuel for the Dow than the COMPX here.

Re Heinz's post: PC OI during the bull market was running 2-1 on the side of puts? Or did I misunderstand that.

My problem is that all of a sudden a lot of the pros on CNBS are saying this is a bear bounce, and we're headed for 1500-1800 COMPX. You can take whatever contrarian view you want, but you can bet that 1500-1800 won't be THE bottom.

Just some morning ramblings. We broke that NDX bear flag yesterday, but I'll give it until we're under 1900 on the COMPX to call for another 250 points down.

Best,

Paul

P.S. Is it my imagination, or is FF01H pricing in a nearly 100% chance of 75 bp on Tuesday?

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