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

To: Les H who wrote (43594)	3/19/2000 4:34:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

Stock Market: Wow! Everything happened all at once, as has come to be the case in the fast-moving markets of the past couple of years. Obviously, the equity-only put-call ratio remains on a buy signal. The oscillator, however, did not turn bullish until Thursday's monstrous action took place. So breadth has improved, although if I told you the Dow was going to be up 500 points, would you have thought that there would be 700 declining stocks? Another eye-popping statistic is that there was 10 times as much advancing volume as declining volume. So, we have buy signals, but is it too late to buy? I don't think so. Usually, when you see massive upside volume like that with the Dow coming out of an oversold market, there is more to come on the upside. Expiration: will not have any material effect on the market Friday. There just isn't enough open interest to generate arbitrage programs of the size required to move the entire stock market. (On Tuesday, we noted that if $OEX were below 730 there would be sell programs, but $OEX is far above that level now). On CNBC, there were some allegations that expiration-related trading was somewhat responsible for the record- setting market moves of Wednesday and Thursday. Don't believe it. In fact, if you compare the trading volume that took place vis-a-vis the volume and open interest changes in S&P 500 options and futures and $OEX options, you will see that index options represented very little of the total market trading activity. optionstrategist.com