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Strategies & Market Trends : Ultra OTC Fund - UOPIX -- Ignore unavailable to you. Want to Upgrade?


To: John who wrote (930)12/5/2000 12:46:18 PM
From: Todd Reichardt  Read Replies (1) | Respond to of 2063
 
Hi John,

After going back to my message I can see where my intent could have been lost, I wasn't trying to find the faults so much as to determine what you were "predicting" by using the proposed method. McMillian in one of his option books said something like you can set up an option strategy to capture any type of market move, but in the end you still have to predict something (it going to go up, go down, stay unchanged, go up by a certain amount....). Using AIM, in a sense you are predicting that there will be periods of greed (overvalued) and periods of fear (undervalued), hence you sell to the greedy and buy from the scared. Your proposed modification to AIM essentially predicts what AIM does, but also that there is some underlying bullish move.

Todd