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

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To: Steve Lee who started this subject3/8/2002 10:45:33 AM
From: Dave Gore  Read Replies (1) of 99280
 
Now some of you guys see the danger of relying on VIX and VXN indicators to short the market. The rally is confounding the T/A guys.

Why?

Market psychology sentiment has been FAR more important lately as I have said many times.

With the better economic numbers last week and now the stimulus package combined with all the cash on the sideline(which is like a COILED SPRING), the rally may continue to confound the T/A-ers and the VIX-ers and VIX-ens.

What could derail it?

When the market rises up enough that the REWARD to RISK shifts to the downside. Then you will see the Market focus on fears again, like the Feds tightening or accounting/new SEC regulation issues, over-valuation, etc.

On our thread we are always discussing not only T/A and Fundamental analysis, buy READING SENTIMENT and playing REWARD TO RISK (which shifts dynamically)
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