Replies to post #120936 on Zeev's Turnips Patch-No Politics (ZEEV)

[jrintl]

Doesnt delta-hedging move in opposite direction usually of preceeding week's move (and we are above strikes?)

[market_watcher]

I've been thinking about the EOM and EOQ stuff. Wasn't it EOQ and EOM in March 2000? Yet from the intraday high on the 24th, we dropped 8.6% to the close on the 31st.

Reprise, perhaps? That would satisfy the e-wavers, who need their 'c' down to start ASAP, as well as get rid of some of the overbought readings on the daily and weekly. I just think you're looking too straight up here.

[Culmus]

aj, on the other hand because option trading is rather erratic at times some moving averages are better indicators as day to day numbers. There it might be worth to point out that the 7 DMA and the 21 DMA both have reached their lowest levels since mid 2001. And these moving averages are without a doubt very good indicators in pinpointing market extremes as the 7 DMA exactly nailed the bottoms on September 21st, 2001, the one on July 23rd, 2002, and the one on February 13th this year by two days. It also nailed the tops on August 2nd 2001, March 11th 2002, August 22nd 2002, December 2nd 2002 and the one on March 21st this year, all of these on the day.

Right now the 7 DMA stands at the lowest level since almost two years at 0.47 and has been on a steep downward slope since 5 days running. I believe the string you are talking about might well be behind us. We might be closer to the top than you think.

I am talking about equity options only, excluding QQQ options.

Culmus