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Strategies & Market Trends : Classic TA Workplace

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To: skinowski who wrote (123881)9/11/2005 2:19:26 PM
From: Shack  Read Replies (2) of 209892
 
I was going to take a separate account and on about 90% buy oils and energies, and use the balance to be short ES futures

Would that really have been market neutral? Arguably energy and the SPX aren't sufficiently correlated to make that a real hedge. But I get your drift, and it did indeed seem to work.

As for Rydex, its pointless for me to speculate as to the strategies of the players, I just have to go with what I know. But I find it interesting that both my P/C analysis and the Rydex ratio hit bearish extremes in the same week and we reversed hard off that swing low.

I am still amazed at the dichotomy out there among the charts. There are some roaring bull markets while there are sectors and stocks which have been treading water or have been in a bear for some time. Such is the nature of the cyclical B wave.
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