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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: The Freep who wrote (36521)3/3/2002 11:24:19 PM
From: mishedlo  Read Replies (2) of 99280
 
I am not sure it matters when they were bought.
If if does matter then I would assume some sort of weighted moving average would be appropriate.

But that is not how the market seems to react.
When the pendulum swings to far in one direction we get a huge snap back, like Friday (and if one looks at those times you will see we were well under Max pain and moving averages would not have mattered). Same thing in late Dec Early Jay. We had a huge rally but sunk precicely to Max pain. I doubt it mattered one iota when those calls were purchased, but they were toasted. My guess is that many of those Calls were of recent purchase (playing the Jan Effect rally that happened in Dec not Jan), but again I can think of no reason why it would matter.

M
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