Joined: 28 Dec 2005
|Posted: Thu Mar 16, 2006 6:07 pm Post subject: CBOE Put-Call (Letter to the Editor)
|Lou, the CBOE put-call ratio is the volume of puts
divided by the volume of calls, of all indices and
stocks. When SPX rose above 1,310, the CBOE put/call
fell to 0.20, which indicated extreme bullishness. So,
most felt the market would rise further. Of course,
the market soon fell, since it's a contrarian
indicator (of people's greed and fear). The CBOE
put-call closed at 0.32, which indicates a market top.
Everything seems to be pointing to a market top (also,
market breadth has been deteriorating). Arthur
> Hi Art
> What is up with the p/c ratio?
> Is there an error? Its so low it makes me wonder.
> What is precedent for this?
> I haven't read anyone talking about it, but that
> kind of lack of fear
> does not make me wanna be LONG THE MARKET!
> With a reading like that I'm playing it cool for