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To: marginmike who wrote (45446)7/12/2002 9:49:35 AM
From: AllansAlias  Read Replies (1) | Respond to of 209892
 
This morning illustrates a common problem with Rydex trading. Since dynamic fund trading takes place at 10:45, one does not have the chance to cash in on a gap-up. The odds favoured a gap-up today, as was mentioned here by a few people, but if one is holding Rydex, which I was yesterday, one is guessing that price will not get back under the previous day's close on early weakness.

It is striking how often the low or high of the day is made between 10:15 and 10:45, as you well know.



To: marginmike who wrote (45446)7/12/2002 9:50:12 AM
From: AllansAlias  Respond to of 209892
 
No reason to doubt that we can bounce into Monday at this point. Still, I reiterate that I keep expecting an external news shock in this setup. This is the risk that is present when "the window is open". Imo, the risk is not always high of such an event. One has to respect when it is high. I try not go long when the window is this open.

edit: BTW, I am not referring to something like the Mich Sentiment. I am talking about an outside event.



To: marginmike who wrote (45446)7/12/2002 9:55:40 AM
From: AllansAlias  Read Replies (1) | Respond to of 209892
 
Ugh. Dow is looking like we could see a new low this morning. I think 'iv of 3' may be done. I thought we'd make it to Monday, maybe even Tuesday morning.