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Strategies & Market Trends : Waiting for the big Kahuna

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To: Barbara Barry who wrote (12643)1/4/1998 2:51:00 PM
From: William H Huebl  Read Replies (2) of 94695
 
Aha BB,

I see your problem... just remember that the SIGNAL is still a buy even after a partial buy. Here is the "ideal" sequence:

SIGNAL POSITION

BUY Open longs (or calls)
Partial Sell Close longs (or calls)
SELL Open shorts (or puts)
Partial Buy Close shorts (or puts)

Here are alternate scenarios

BUY Open longs (or calls)
SELL Close longs (or calls) and open shorts (or puts)
Partial sell Hold positions
SELL Hold positions
Partial Buy Close shorts (or puts)

To summarize:

Once a SELL has occurred, you need either a Partial buy or a BUY to change positions.
Once a BUY has occurred, you need either a Partial sell or a SELL to change positions.

The "Partial" is a weaker signal that corresponds to very short trading periods. The SELL and the BUY signals are strong signals that mean a 5% or more market change will occur. (At least so far...)

AND IF YOU CAN FIND ANYTHING ON VIX OUT THERE, PLEASE, LET ME KNOW!

Thanks,

Bill

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