2.22.2006

Trading Techniques


A little more on my trading techniques- I like to buy lower and sell higher- One method - Follow the VXO - the volatility index on the OEX or the SP 100- If one looks back to January 20, the index spiked to about 14 when the 10 day SMA was about 11.8. The SPY was about 126, a fine time to buy. Today, the SPY is in excess of 129 and the VXO is under 11 and the 10 day SMA is just under 12. Probably a fine time to sell. If one looks at the VIX and VXN, the volatility indexes for the SP 500 and the Nazdaq 100, you will see similar patterns. So this is one method I use to buy lower and sell higher. BUY OR SELL ETF'S WHEN THE VOLATILITY INDEX'S ARE STRETCHED FROM THERE SHORT TERM MOVING AVERAGES More to follow-

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