Too Much Call Buying

There is too much call buying at the ISE for such a large down day. I don't think the bulls will be able to make it two turnarounds in a row today.

4 comments:

Anonymous said...

I don't think we close at the lows...

Tsachy, post some GOOD news. There is/has been quite a lot lately. You seem biased again.

S.

Tsachy Mishal said...

The news is always best at the top and worst at the bottom. Selling when the news is bad and buying when the news is good will not lead to good long term returns.

Tsachy Mishal said...

The key to investing is to buy when the news is bad and then sell when the news is good. Wash. Rinse. Repeat.

PJ said...

In addition to call buying, there was a big rotation into the Russell 2000 today. Seems like Nasdaq speculators were spooked by Cisco and went to other speculative stocks.

But they're not buying the S&P. Everyone is trying to maximize beta. That can't be a good sign for the market.