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

To: Les H who wrote (36319)	12/31/1999 11:15:00 AM
From: Les H	Respond to of 99985

Stock Market: Well, we have differences of opinion between our two favorite indicators. The equity-only put-call ratio is on a sell signal, as we announced on Tuesday's interim HOTLINE update. However, now that tax- loss selling seems to have ended, we have a BUY signal from the oscillator, which is based on market breadth. So what is one to do? I favor the January effect spread -- long small-caps (taking advantage of the oscillator buy signal) and short big-caps (which are probably more affected by the equity-only put-call ratio sell signal). Of course, things will change somewhere down the line, but right now the small caps seem to be ready to take the lead for awhile. We'd feel better if both indicators were in alignment, but they're not, so the January effect spread is our best choice right now. optionstrategist.com