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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (8858)1/5/1997 8:14:00 PM
From: dppl   of 132070
 
Michael, wildly swinging markets -

this won't be your cup of tea -

members.aol.com

but this chartist, whom I can't quite follow, does make a valid point I think when he says that a wildly swinging market is not the prelude to a big bull runup. On the contrary, constriction - a slow losing of sellers - usually precedes that sort of thing. Excepting options expiration weeks I've noticed this to be true generally. I also recall that June was pretty wild before the July shake-out.

What you say about short percentages applies also I think to put call ratios, doesn't it, since many can be covered calls, naked calls, as well as long calls. I assume there is no way to analyse these figures?

Thomas
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