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Strategies & Market Trends : Win Lose or Draw : Be A Steve, Make A Call -- Ignore unavailable to you. Want to Upgrade?

To: nsumir81 who wrote (2685)	2/18/2003 7:37:27 AM
From: sun-tzu	Read Replies (3) \| Respond to of 11447

that's a fallacious and flawed statement. any ratio takes into account, the absolute number of the numerator and denominator. hence, the open interest of both puts and calls are accounted for in the ratio. utilizing the 21 DMA on the p/c allows one to filter out anomalies. therefore, you ignore large leap credit spreads or put "bullets" and focus on one simple thing...the number. as for the VXN...one can make a case for a series of declining tops. it's next move is therefore down. unless your as good as alex hamilton who is astute enough to know we are breaking up out of a huge descending wedge here and now. the VIX...most seasoned and savvy traders understand that the VIX trades in ranges. if resistance is conquered, it trades up to the next level. there is no rule that states that the VIX must move up to 50 in order to confirm that the selling is nearing the end. additionally, the rydex asset allocation shows how hard retail traders are leaning on the short side here. the bottom line, the 'art of trading' requires one to view many indicators and interpret them dispassionately. if the trader is right, he/she lets the profits run. if the trader is wrong, he/she cuts the loss. in that way, you can be "right" 40% of the time and still make money. the worst thing that a trader can have is an opinion. let's put this to rest