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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: augieboo who wrote (12298)	10/28/2002 9:15:14 AM
From: ajtj99	Read Replies (1) \| Respond to of 30712

Augie, USPIX does better when things go down due to the increased volatility readings, which make put options appreciate in price. The opposite happens when the market gets away from you the other way. BTW, in May I was unfortunately short via USPIX at COMP 1600 when the index shot up (I was waiting for a drop to fill the gap around 1580 or so). I was in USPIX at the time, and I waited for it to go from 1600-1759 and then down to new lows at 1475 COMP. That didn't seem to hurt me too much this year. I'm in a similar situation, as I decided to put things in line with the prevailing trend prior to leaving for a few weeks. So far, not so good, but I'm not concerned. The 3-white soldiers have me thinking of buying a .382 re-trace. It we don't re-trace, I'll just sit tight, as this is getting extended. Note that in 2001 we ramped for about 2-3 weeks off the re-test of the lows. We then did a .382 re-trace from 1750-1627, if memory serves. I don't think we can go past 1350 COMP without doing a .382 re-trace. That should allow you to exit your position and wait for a less stressful move. 3-white soldiers could target the August highs, and a 100% move off a re-trace could target the main downtrend line on the bubble weekly chart around 1480, if my memory serves.