To: scouser who wrote (1623 ) 8/25/2000 2:57:58 PM From: CIMA Respond to of 2182 Got this in my E-mail, kinda interesting: Go to a website that allows you to pull up charts and see what you make of the Volatility Index. (VIX) as it relates to stocks. Volatility continues to decline, breaking below 20. "Volatility Contraction" often occurs before an explosive surge in volatility. To get our latest views on the key levels that will confirm a correction in stocks see our daily reports. If you haven't yet bought any Access Units which allow you to call up our daily reports, you may wish to consider it now. You do NOT want to wait until after the markets are going crazy to set up your account. Typically, people wait til they see the proverbial fit hit the shan to prepare. Our phone number: 609 987 0600. If you are an active trader, make sure you have an adequate number of Access Units in your account before the volatility hits. For traders, volatility is your friend. For most everyone else, it can be a nightmare. When the markets a flying, you need to know all the key support and resistance levels to make your judgements. If you have only recently registered to this site, note that we are expecting a signficant turn in the markets no later than Mid-September. We believe that stocks will most likely sell off into Mid-September which may set up a good buying opportunity. But if stocks rally all the way into Mid-September, it will only serve to set up a more severe correction going forward. To understand why Mid-September is likely to be a Major Turning Point, read up on the Economic Confidence Model:pei-us.com If you lose this link or it does not work, go to our site at:pei-intl.com Enter as a Registered User with your ID and PW Then click on RESEARCH Under Reseach, click on "PEI Models & Methodoligies", which is in blue type about half-way down in the center of the page. Then look to the scroll bar and you will see a title, "Economic Confidence Model" Looking at that Volatility Index, it would appear that stocks are about to make an explosive move higher or lower (or perhaps both) very soon. Remember that even if stocks move higher over the next few weeks, they will not sustain this rally beyond Mid-September (See discussion of the Economic Confidence Model) If you do pull up one of our daily reports, pay special attention to the "Panic Cycle Days" where indicated. A Panic Cycle is merely our way of telling you in advance that these particular days are due for extreme volatility. Knowing that a particular day is likely to be volatile can prepare you mentally to act quickly as the need arises. Once you know which days are "Panic Cycle Days" study our support (bearish reversals) and resistance (bullish reversals) and be ready to act. The short-term comment in each daily report will guide you as to the relative importance of various "Reversals" and how to interpret them. As a market reaches into overbought territory during a Panic Cycle Day, it may offer you a setup. It may in fact find resistance precisely on one of our daily or weekly bullish reversals. That can often be a setup for a fast move down. In any event the month of September is likely to prove very very interesting.