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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: marginmike who wrote (13508)	7/17/2002 2:21:47 PM
From: J.T.	Read Replies (3) \| Respond to of 19219

I think you misunderstand how I utilize BKX 780. I use it as a litmus test whether the market will hold and reverse immediately back up. Or impending break hard dead ahead before selling exhaustion sets in, the market stabilizes, gathers internal strength and reverses hard back up. I have rarely, if ever, (maybe once or twice) used BKX 780 break to blow out of rydex. I use 780 more for individual issue selection or when to ramp increased leverage with options. I think trying to figure p/e's into the equation right now is ludicrous just as it was ludicrous in the melt-up in 99' 00' when it made no sense. The excess capacity and Y2K bubble is worked off. Pure and simple. The economic data coming out over the last 6 months suggest the the economy is now getting back on sound footing and capital build-out is dead ahead, even though it will be moderate build-out. As soon as the market gets a whiff of this build-out... it is melt-up city... Double Dip theory is a joke. Best Regards, J.T.