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

To: Killswitch who wrote (14425)	8/23/2002 10:54:38 AM
From: lifeisgood	Read Replies (1) \| Respond to of 19219

Do you use some kind of stop with this strategy to avoid the (perhaps small) possibility of the market going down to make a lower low later this year before the VIX gets below the 200 MA? Sort of. For example, if I feel that the market psychology has changed (e.g., selling good news rather than currently buying of bad news, I might hedge some of my long side risk). Remember, I don't use just one indicator. Another one at the moment that speaks volumes is that bullishness has actually been going down and bearishness has been going up as the market went up. That is strong indication IMO that many "don't believe" this rally. As a contrarian, that is powerful evidence that the bears must capitulate before we'll see another significant move down. I believe that big move down will happen, just not when everyone (bulls and bears) expects it to (i.e., right now). Believe it or not, I think there's an even chance that we finish up today on all major indices. best... LIG