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Strategies & Market Trends : Complacency Indexes

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To: TechTrader42 who wrote (621)3/4/2002 6:00:23 PM
From: Triffin  Read Replies (1) of 1487
 
Well .. Ok .. FWIW ..

I've noticed from your remarks that you've observed
that the market was just just as likely to experience
a 'continuation move' as a 'reversal' when your CIs
obtain extreme readings ie "0" or "100" .. just speculating
that a possible way to exploit the CIs would be to initiate
combos or straddles at extreme readings in the CIs rather
than make a 'bet' with a directional bias .. Options on
the QQQ or DJX would be best to exploit this as they have
strike prices at every integer interval .. If 'volatility'
expansion occurs concurrent with extreme CI readings then
that may be the basis for a 'trade' ..

Jim in Ct ..
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