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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (3205)	9/4/1998 8:03:00 AM
From: Tom Trader	Respond to of 44573

>>Any idea where we go tomoorow? B--I really don't try to project day to day movements--because I know that I can't-- and so anything that I say will be of little value to you. We are obviously in a strong down-trend -- but that does not preclude the possibilty that we may rally strongly at some point, given that we are very over-sold and sentiment is so bearish that it is almost inevitable that we will rally at some point. Never lose sight of the fact that there can be major rallies within a down-trend just as there have been major declines within the uptrend that we have been in for the past three years. I think that it would help you in the context of your puts to have a clear strategy as to when you will exit your trade--whether with a loss or gain--based on what the market ultimately does. If the volatility decreases, the value of the puts will rapidly dissipate given that there are only two weeks to expiration.