A Bold Prediction

  • September 27, 2001
  • Len Yates

Going
out on a predictive limb, I
would say we’re about five days away from the bottom, by my
reckoning. We should be able to
recognize it by a sharp volatility spike, indicating fearful selling and a
climax.

This, as I wrote on Sept.
24, will probably complete a double bottom. Please
note that it might not look like a double bottom on a Nasdaq chart because the
second bottom would be so much lower than the first.After the market bounces off this bottom, it could either
go into a steady climb, or roll over and head further south. 
My predilection, as I wrote on the 24th, is the former, but we’ll need
to be ready for either.To play the
sell-off, I’m using in-the-money puts to try to avoid paying so much for time
premium.