To: Monty Lenard who wrote (24372 ) 9/1/1999 11:25:00 AM From: James F. Hopkins Read Replies (1) | Respond to of 99985
Hi Monty ; Well I'm trying to keep one eye on the Dollar, as any big Forex change can effect the way Forgieners see and buy/sell our market. While they don't hold but maybe 30% of the blue chips, that 30% can turn out to be the control factor, particularly if they sell off, as it's just to hard to find enough buyers to offset even 5% of actual tickes selling off let alone a 30%. ------------------- If blue chips fall so much it puts a lot of pressure on derivatives and margins, and money has to be raised so every thing else has to sell off. However if the Dollar can hold where it's at the market don't look to bad. My Dollar Volume of the most active stocks is hitting things fairly close, but you know I still over trade the market. ( trade more often than I need to ) I was recently looking at the VIX and saying to my self, well sure this pattern may change from time to time, but for now it's easy enough to see the trading ranges, and if it is confirmed by my DVI , then I will trade off of it. With conformation in the DVI The VIX = Sell at 22 , short at 20, BUY/cover at 26.. buy on margin at 28 and stick with your bets until the VIX and or DVI ( dollar Volume Index ) says other wise. The key is not getting into the bets mid range and if you miss the enter points ( the train ) by very much at all then having the patience to wait for the next train. The market will be here next year and I will seldom have to wait all that long to catch the next extreme on the VIX. Easier said than done as I myself am bad about making bets in the middle of the trading range. But it's a habit I'm getting out of. THE vix hit 27 yesterday, and the DVI looked OK so I was buying.