Very Extreme Readings

We are seeing very extreme readings this morning in the put/call ratios. The total ISE is at 34, which is likely a record if it closes here. The CBOE is at 1.22 and the CBOE equity only is over 1. We definitely saw some fear this morning. The fear does not seem as extreme as the put/call ratio's are, but regardless this is a positive from a contrarian standpoint.

2 comments:

Onlooker from Troy said...

Yes it's really rather surprising that we're seeing these kinds of numbers given the rather small pull back we've experienced so far.  Especially if they stay here to the end of day.

Also you probably noticed the huge downward shift in the Rydex levered bull positions yesterday.  Interesting.

Tsachy Mishal said...

I noticed the drop in Rydex total but did not realize the large drop in the leveraged ratio. Thanks for pointing this out. Hopefully, it will get even lower today. Its been much more difficulty for me to get a read on sentiment these days. As many have pointed out algos have no emotions.