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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: Dan Duchardt who wrote (10520)2/17/2002 12:14:59 AM
From: Dexter Lives On  Read Replies (3) of 19219
 
Hi Dan,

I think of that chart as an indicator, not even suggesting it as a reliable one. I get your point about correlation vs. cause and effect; it's the correlation that interests me. In the extremes, it should be a warning sign of significant risk.

That bear/bull ratio is going to the moon, and the recent history suggests short positions may be dangerous to hold on to. If I'm sitting on short position gains, I may want to book or hedge them based on that chart; but that's just me :^>. It's just one more thing to look at, but the evidence appears compelling. Of course that ratio could go a lot higher before it reverses...

Cheers. Rob
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