Mixed Signals

The CBOE put/call ratio is showing extreme optimism while the ISE is showing extreme pessimism. This was the case to a lesser extent yesterday as well. The drop in the VIX leads me to believe that the CBOE is probably more accurate but I prefer it when they are singing the same tune. All in all there is not much to read into this.

2 comments:

Anonymous said...

I'm beginning to think we may need a European default to bring the fear we need to put a bottom in. There has been little urgency to the selling when we dip. It's been catatonic!
Only positive I see is relative strength in the financials since mid day yesterday.

Tsachy Mishal said...

At some point lower prices brings panic. I agree that the European crisis is the most likely candidate to get the ball rolling. The financials are not the market tell they used to be.