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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?


To: John Pitera who wrote (36607)10/15/1999 8:44:00 AM
From: Tom Trader  Read Replies (1) | Respond to of 44573
 
Hi John -- that is a very interesting chart that you provided

I think that one of the things it shows is that divergences can become very exaggerated; this becomes apparent in relation to today's valuations vis a vis rates of returns.

The danger lies in that taking a position against the trend because of such a divergence can be an expensive proposition precisely because an exaggerated situation can always become more exaggerated.

Thanks for posting that link