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Strategies & Market Trends : Complacency Indexes

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To: TechTrader42 who wrote (1257)5/14/2002 3:52:10 PM
From: Paul Shread  Read Replies (1) of 1487
 
Last Friday was a particularly clear set-up because of the higher high in the VXN coupled with the higher low in the Nasdaq, which I thought created a bullish divergence. Added to your CIs, it looked like a good place to go long to me. Looking for bearish signs here, the one very clear one to me is the extremely low PC ratio; we could close under .50 at this rate. Your CIs may not get to triple 100s at this rate, or they may get there today. -g-

I also know my own mentality; if I'm not on board for a launch, I'm not going to chase it, so I have to position for the turn. -ng-

I think Larry's getting a buy signal today, so that makes me a little hesitant to add shorts here.
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