Too Much Call Buying

We are seeing too much call buying at both the ISE and CBOE. This might signal that the market needs a rest, but there is no reason to get too bearish. The market is still oversold even though we are stretched in the uber short term and seasonality will be positive next week. Another reason not to get too bearish is because Europe is still extremely oversold and their markets have the ability to bounce hard and drag us along as they did on the way down.

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