A Look At The ISE Equity Only

I have been discussing the upcoming oversold reading a lot. The put/call ratios will also be oversold early this week. The chart below is the 10 day moving average of the ISE equity-only

It is showing the largest amount of put buying we have seen years. I don't believe that sentiment is nearly as negative as this chart would make you believe but the message is clear. In a day or two if we see continued put buying the the 10 day moving average of the  CBOE put/call will also be in the area of excessive pessimism.

As an aside I wonder if weekly options are having an effect on this ratio.




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