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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Bull RidaH who wrote (32939)	11/2/1998 10:05:00 PM
From: yard_man	Respond to of 94695

>>I wonder if the stats in that chart factor in the specialist using a hedge against their short equities positions (such as long futures or options contracts), whereby their net position could actually be long.<< I don't think that it does. I believe the chart reads change in position. Would be useful to know over what time period.

To: Bull RidaH who wrote (32939)	11/2/1998 10:10:00 PM
From: yard_man	Respond to of 94695

>>The size of the current short position is compared to the average size short position over the last six months. An increase of over 30% is bearish, and a decrease by more than 30% is bullish. The NYSE reports the data weekly with a two week delay, but the indicator is still quite effective.<<

To: Bull RidaH who wrote (32939)	11/2/1998 10:20:00 PM
From: Ross McEathron	Read Replies (2) \| Respond to of 94695

One thing everyone should remember is that this market has forged ahead strongly even in the face of massive shorting. What's going to happen if this market continues up and they have to cover their shorts to protect themselves. We could have a huge blowoff to the upside. I don't see any market internals that tell me we should have a huge selloff here. Could we have a profit taking dip??? Sure. Could it begin tomorrow or even this week. Maybe. We do have an election tomorrow and none of us can predict with certainty what effect that will have on the markets on Wednesday. A lot of people might get nervous and sell till the smoke settles. I myself don't want to see the huge gains made in the last month evaporate. That just means I will tighten up the stops on the stocks that look vulnerable. I have no intentions of dumping unless something drastic changes my mind....which could happen as early as tomorrow... :-) Ross