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

To: Follies who wrote (36725)	1/24/1999 6:16:00 PM
From: bobby beara	Respond to of 94695

Rip & strip. When you see somebody like Dohmen who is excellent at turns switches from a super-bull to a sell signal, it's significant. We have had a dose of extreme optimism showing up in sentiment indicators. Extremes always correct, just like the extreme pessimism did on 10/8. The set-up in the Dow looks like the makings of a failed inverted h&s pattern. This is a market of extremes, take the dow chart and any of the tech charts, xci, ndx, inx2. We haven't seen this kind of lopsidedness yet during this bull market. When put/call ratios go down to the extremes and reverse, it means optimism has peaked and reversed. At some point optimism is exhausted and that happened on the exhaustion gap on the Nasdaq on the 20th and the Major Nutz on the 13th. Because of the vertical nature of this market, I doubt there will be much of a distribution period, in fact that may have already happened with the numerous nasdaq 1 billion share days lately. The vix is making a broadening fan from 11/24 peak, so you will need to stay naked for a while-g- bb