Hi J.T.,
I sense the need for a real purging.As you point out it would be very similar to Oct 7-8 1998.
If so we should get a put to call ratio spike : 2.57 is the 5 year high (occurred on 7/2//97). I forgot 97 was that bad but 98 was 1.25 ish.
Last 30 minute saw a move in that range(note not a daily average - yet - gulp:http://stockcharts.com/def/servlet/SC.web?c=$CPC,uu[l,a]fjclynmy[pb50!b200!d20,2][iUl14!La12,26,9!Lp14,3,3]
stockcharts.com[l,a]mjclynmy[pb50!b200!d20,2][iUl14!La12,26,9!Lp14,3,3]
This would set up a great short covering opportunity.In todays IBD - Nazdaq short interest is once again(for the third month in a row) at a record - 4.06 million shares.
Last but not least keep an eye on vix - we need a spike into the 50-60 range and we'll be up to the 62 pike that was reached in 98.
stockcharts.com[l,a]mjclynmy[pb50!b200!d20,2][iUl14!La12,26,9!Lp14,3,3]
I hate to say it but with the blow-off we had in 2000 - capitulation in the NAZ is where we must look for the washout signs that just seem to be required to get this move back to a healthy recovery.
JMHO
Thanks for your daily work and interpretation.
Let's nail the bottom!
Bob |
