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

To: Patrick Slevin who wrote (141110)	2/7/2007 3:56:28 PM
From: John Pitera	Read Replies (1) \| Respond to of 209892

Patrick, sure I remember watching the Tick in 1997 1998 1999 etc and it would get to -2200 on severe short-term sell offs, 2000 was certainly seen. Part of the reduction in volatility appears to be due to the greater efficiency of the electronic markets coupled with trades occuring in much tighter bid-ask increments and the huge price collapse in the commission and other transaction costs of trading. Some of the volatility collapse is truly structural. And the increase in sophistication in delta hedging and in complex cross market synthetic structured products. Now when we see big enough event and credit risk disruptions occur we will undoubtedly see some fireworks over the balance of 2007-2008. May of 2007 Could be weak as well as Sept and Oct. This Oct will be the 100 year anniversary of the Large Financial Panic of 1907. That was a severe enough scare that it prompted the creation of the Federal Reserve. WD GANN has pointed out how 100 year cycles among others tend to occur in financial markets. John