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To: venividivici who wrote (4805)3/16/2006 5:55:20 AM
From: the-phoenix  Read Replies (1) | Respond to of 41447
 
Yes, if we take out the March 3rd high, then the only way that I can interpret the NDX daily chart is that everything since the January high has been a complex wave 2 and we are now launching a 3 up. More movement like we have seen the past two afternoons could confirm that pretty quickly, but I'd more expect some sideways crap into Opex.



To: venividivici who wrote (4805)3/16/2006 8:26:25 AM
From: skinowski  Read Replies (1) | Respond to of 41447
 
Yes, I read on this too. The stock/bond ratio yesterday reached 3 standard derivations up from its average. Last time this happened was March 2000 - and Dec 2004 "almost" reached this far. The idea, of course, is that stocks are expensive in relation to bonds... and the ratio will decline. Long bonds/short stocks pair trade is a high probability bet at such spikes in the ratio.