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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: chainik who wrote (130594)	3/11/2006 10:50:14 PM
From: Win-Lose-Draw	Read Replies (1) \| Respond to of 209892

...hedging or not, extreme readings in Rydex pointed to significant tops and bottoms... The problem is "Extreme" is something that can only be determined in hindsight. There are lots and lots of points on Rydex ratio charts where betting based on a previous extreme resulted in an absolutely disasterous trade. Only with the passage of time is it possible to go back and redefine "extreme" to a point where it might produce (purely hypothetical) profits. If you look at the size of the equity derivatives markets - and look at the value of what is being traded in "normal" markets - it should be pretty clear that the real action - and thus the real clues - is happening in markets retail doesn't even get to see.