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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (21673)	7/31/1999 2:00:00 PM
From: bobby beara	Respond to of 99985

Joan, you can watch both the VIX and put/call ratios to see when investor sentiment is turning too bearish, however these are not very good timing indicators by themselves and have to be used in tandem with lots of other indicators. When you see such extremes in call buying such as in January and July though you have to be alerted to some kind of top is in place. As Heinz has been saying for the last year, at some point these sentiment extremes as indicated by the p/c ratios in extreme territory since the December top will create a sizeable decline. If you've read IS recent morning update on the building of a top, i believe this characterizes this top perfectly, an edwards and magee broadening top that confounds bulls and bears. The London Stock Exchange is joining nasdaq and nyse in desiring to go public, all the insiders are wanting to cash in at the top, but i don't think their timing will be as good as Goldman Sachs. bb