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

To: Claud B who wrote (11892)	7/17/2001 3:47:26 PM
From: TechTrader42	Read Replies (4) \| Respond to of 52237

The point is that the VIX in the monthly chart is at a low point, as it has been before downturns in the market. That would suggest the possibility that the market could go down (funnily enough). However, it's only one indicator among many. I'm not predicting that the market will head down, because I'm not foolish enough to believe that anyone can consistently predict the direction of the market with any success, particularly not with one indicator. I do think the indicator suggests that traders should be cautious. Mind you, I do think one can say week after week that the market will head back up, and eventually it will head back up, or that it'll head down, and eventually it will head down. That goes without saying, since the market is in the habit of going up and down. The bears warned of an impending crash for years and years during the bull market, and when it finally occurred, they all crowed, "I told you so." I can't help wondering whether they were using stops during the down weeks. Now, I suppose, the bulls are doing the same thing, predicting an imminent rally, and when it occurs they'll declare, "I told you so." Whether it takes weeks or months or years, they'll wind up being right, because eventually the market will go back up. My congratulations to all of them in advance for predicting a spectacular rally. But these comments are irrelevant, because it's a market of stocks, not a stock market, and the general direction of the market is of no consequence to traders charting their way in individual stocks (like determined boaters attempting to row their way up the Niagra River). Or so I would believe, if I lived in a bubble, or perhaps a sensory-deprivation tank.