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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: bobby beara who wrote (35877)11/18/2000 10:51:34 AM
From: eichler  Read Replies (2) | Respond to of 42787
 
Bobby
Thanks for your thorough read of the sentiment indicators.
It's very much appreciated. I believe I should learn about
the Rydex ratio. Could you refer a link or website to find
out more and a source for the daily data?
Glad to see your impression that VIX and P/C are indicating
some level of fear to hint at a bottom. I had seen repeated
comments that the spikes weren't extreme enough. I don't think we are close to "the bottom", but close to a turning
point which may mark a short term bottom. Maybe an anemic
upmove until the next slamming or sideways as you suggest through the holiday?
Something else I am curious about. Recently, I have been checking max-pain figures and short interest on stocks I
have been playing. I see alot of heavy betting on the short side, couple of issues are currently at record short interest
levels. My understanding is that for the most part, this
is a big negative. What I am wondering is if there is a point
where when too many bets are one-sided, if this could pave the way to a decent rally through short covering? I would think that if a stock was relatively high in its trading range, heavy short interest would be a telling clue; but what
about stocks at their low ends of trading? I think if I was
short a stock at or near its lows, that would make me very
nervous. What is your opinion on this?
Thanks again.
Regards,
e