A diary of the thought process behind my investment decisions
Extreme Call Buying
100 S&P 500 points higher and they are buying calls hand over fist. Both the ISE and CBOE are showing extreme call buying. One day of this does not make the market a sale, but we are definitely closer to extreme optimism than extreme pessimism.
I don't think we are anyway close to extreme optimism. We are up over 1% today, it is natural for the put call ratios to be very low. It takes time for people who have been beared up for over 6 weeks to change direction. Shorts will be tricky until we get more bulls on board. This is an extremely strong market with a healthy wall of worry.
3 comments:
I don't think we are anyway close to extreme optimism. We are up over 1% today, it is natural for the put call ratios to be very low. It takes time for people who have been beared up for over 6 weeks to change direction. Shorts will be tricky until we get more bulls on board. This is an extremely strong market with a healthy wall of worry.
I would much rather buy into a market where there is extreme put buying.
ie 2 weeks ago
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