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Bob:
The way I read and use AIQ is that option players need to act strictly on
the ER rating and not mess with waiting on a confirmation of any kind.
Remember that ER signals on AIQ can come a day or two early so there can
still be some weakness from here before it is confirmed but if trading
options, the premium will have already gotten out of hand if you wait for
the confirmation. Now that AIQ has given a Buy signal and I see the huge US
as confirming the next move, I look for Confirmed ER's on Stocks (along with
some other indicators I use).
Bottom line as I see it.....now is not the time to be in puts. I will not
bet AGAINST a AIQ signal.
Time will tell.
-----Original Message-----
From: bobrabcd <bobrabcd@xxxxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Tuesday, October 21, 1997 6:46 AM
Subject: Re: Did Telescan / AIQ give a signal
OK, Lee, here is a responce. Telescan did give the same ER numbers as Dial
Data for 10/20/97. It also gave a 38/62 WAL. My US will be different than
yours but the ratio is similar. Now then how will I use the ER rating as
an option trader? I would wait for the cycle bottom to be put in before
buying calls. Infact my puts were exited an hour and half before the close
on Friday 10/17. No way would I wait for a buy on the ER to exit puts, and
on Monday calls were taken for a ten point ride via the TAPEread3 chart
posted yesterday. As for Tuesday the volatility distribution and the Zone
timer have the market virtually flat, see amoss10/20 attachment. Also the
modified volatility indices have a propensity of making tweezer bottoms so
I will wait for more divergences to set in before taking this ER rating for
a longer trade.
At 10:50 PM 10/20/97 -0500, Lee Clayton DDS wrote:
> I'd sure like to know.
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