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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: Susan G who wrote (20464)	7/11/2002 5:53:54 PM
From: Dave Gore	Read Replies (2) \| Respond to of 26752

BTK indeed rallied today and the 5 to 1 call/put ratio on CSCO calls yesterday was followed up today by a 4/1 call-put volume. Volume was heavy today with 16,000+ July 12.50 and 15 calls vs. 4,000+ puts. MSFT Jul 50 and 55 call volume was 19,000 vs. 9,000 put volume today. Hmmmm.... not unlike the pre-May 8th rally, as I said yesterday. I am beginning to think that watching the volume on QQQ options or the options of favorite stocks like CSCO really can be predictive. We'll see, but over the last 3 months that I have been loosely watching, they appear to show some merit. I know some of you are big fans of T/A but it sure didn't predict the massive turnaround rally today. In fact, if anything it was predicting a further breakdown. T/A is more accurate in more normal markets which trade on earnings and news, not primarily fear and emotion. "Buy" and "Sell" programs are clicking in without warning or reason. Although watching channels of support and resistance are worthwhile as always, T/A has much less to do with trading success than most think these days.