Same As Yesterday

There was extreme call buying again yesterday. It is rare to get these type of readings two days in a row. In previous instances this almost always led to a move lower, if not in days than in weeks. This did occur on extremely low volume and at a seasonally strong part of the year so the signal is not as strong. That said, I would be careful on the long side.

3 comments:

Chaos! said...

CBOE equity put/call was .64. That's a mid range number.

Tsachy Mishal said...

Yes, but where was the index and total? Where was the ISE? ISE equity?

Every time the index closed below the equity on the CBOE a correction soon followed. It is a rare occurrence but it worked 5 out of 5 times.

Anonymous said...

If a market that 'should' go down repeatedly refuses to do so, it is going much higher.

We are sitting right on the S&P 50%-retrace level. We have edged up toward it over and over again these past few weeks with little to no pullback. There are *a lot* of people selling in front of this level. PCE growth is lame, considering the depth of the recession we are supposedly coming out of. New home sales are nearly back to the lows posted earlier in the year.

What is the result???? This market can't even sell off 0.25%.

Watch your offers.

JD