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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (8290)	9/17/1999 10:57:00 AM
From: Q.	Read Replies (3) \| Respond to of 78816

re. <<Got out of quite a few stocks today as support was violated.>> I would humbly suggest that perhaps you got out at a bottom on Thursday. Yesterday looked like a market bottom to me, based on VIX and put/call ratios. VIX is the best intraday indicator for a bottom. It peaked at 30 intraday yesterday. Lately, values in the high 20's have marked intermediate-term bottoms. The peak at nearly 30 yesterday called the bottom intraday. When I saw it, I begin looking for a few new longs and to close a short or two. If I had thought of it, I should have bought index calls. The VIX peak was verified at the end of the day when the CBOE put/call was reported at 0.81. This also suggests a bottom. Even last October, when the ratio went above unity, it did so only a few days and the ratio 0.81 occurred within a few days of the bottom. I don't have much confidence in most TA, except for one thing: there are several excellent sentiment-based indicators of market bottoms. We just saw two of them yesterday.