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To: bcrafty who wrote (31407)2/17/2002 6:15:40 AM
From: sun-tzu  Read Replies (1) | Respond to of 209892
 
bcrafty, i just went back and reviewed the post. i realized that i got hyperlinked into the MITA thread and wasn't paying attention -g-

this was the link i was referring too...

Message 17069158

i was impressed with the posters understanding of liquidity. as for the p/c ratio, i utilize it rather extensively as one of my coincident indicators along with the VIX and VXN. however, i recognize that numbers mean different things too different people.

what's more important to me is the person behind the interpretation.

if i were pressed for my MOST important signal, at this point it's seasonality. we have been locked into a classic seasonal period for equities since late september of 2001. namely, bullish from october through march and bearish from april through september. the recent liquidity infusion as a result of september 11 was the driving force for this rather strong pattern.

now, the liquidity and rate cuts are drying up and we need to take this pattern to its natural conclusion. february is always the worst performing month in this bullish timeframe. so lets make some new lows and then ride the final crest through march.

at some point in april/may, we'll have a great opportunity since the liquidity support, and bullish psychology will be gone.