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Strategies & Market Trends : January Effect 2005 -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (67)	2/6/2005 6:31:16 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 76

That would be an odd twist if stocks start a rallye right now into the face of the dollar and bond strength; which is odd. At the same time the VIX is at 11.20 (and the VXN below 17) showing complacency at a maximum and options premiums being historically low. That means, i can buy portfolio insurance at good stock price levels and rather cheaply, this time. Usually, such a low vix reading is akin to a disaster waiting to happen. With the RUT having rebounded 30 points or 5% from the traded low, its time for an acid test; i wonder if it takes out the old high or fails at 640. Currencies behave like wounded deers, all of them fall to the wayside now, they open quite a few ticks low after the davos meeting. Usually one red candle is followed by 2 more, so i'll go shooting some fish in the barrel. The only question is what gets hit more; the heavily traded EUR or the less liquid currencies which need to catch up a little... In any case, with the trend broken and many futures funds still heavily long the currency sellout is occuring even faster than the previous sickening rise.