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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (15135)	4/28/2001 11:07:00 PM
From: GTC Trader	Read Replies (1) \| Respond to of 30051

Zeev, Please let me see if I understand you correctly. I see a bottom on 4/17 at 1869. Does this start the inverted W? 3 days later, the next point is formed with a high of 2203. 3 days later saw a potential 3rd point at a low of 2001. If that is indeed the 3rd point, then the 4th point is next at 2200 +/- 50 points, and should be seen roughly Tuesday or Wednesday, followed by a sharp dive to the 5th point with a low of ~1850. Does this describe Scenario 2 that you discussed with ajtj? And is Scenario 1 as follows: Points 1 and 2 described above with a low of 1869 followed by a high of 2001. Point 3 should form soon around 1850. Point 4 will follow with a high of ~2200. Point 5 will be yet another visit to a low ~1850. Hopefully I am correct and you can answer with a simple "yes". Finally, I don't understand why you were afraid to go long with a large P/C ratio. I thought large P/C ratios accompanied bottoms (lot of fear causing lot of Put buying, darkest before the dawn thing) and small P/C ratios accompanied tops (lot of greed and confidence causing lot of Call buying, tops look like it simply can't get any better, and it doesn't). Is the simple answer that the reading was Bullish, but too extreme to take at face value? Is it indicative of the MMs trying too hard to paint the tape for the end of the month cuz they know something that makes them think a sharp drop is imminent? Sorry for the long question. Hopefully you can provide a short answer. I appreciate your clarification. Best regards - GTC