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To: limtex who wrote (96600)4/19/2001 9:02:29 PM
From: patron_anejo_por_favor  Read Replies (1) | Respond to of 436258
 
Actually, the bears capitulated in January to March 2000. The put/call ratio dropped below 0.3, there were over 60% bulls on the Investor's Intelligence survey, the VIX was under 20. When the last bear was short-squeezed out (err, except for you, Luc) the market began to crash. Ever heard of the expression, "the market climbs a wall of worry"...bears are your friend if you're a bull (see IBD under the investment sentiment indicators...the higher the bearish sentiment, the better).

If you mean we need the Bulls to capitulate (ie, have a crash on enormous volume with the VIX going to 60+) before we can enter a new bull market, I would agree that would probably mark a lasting bottom, but it's not absolutely necessary.

Regards

Patron