L. McMillan---brief commentary, 3/1/02...
optionstrategist.com
>>>For Friday, March 1st
On the surface -- especially if you are subjected to the nonstop bullish cheerleading on CNBC -- you'd think the Dow (and, by inference, other broad-based big-cap indices, such as $SPX and $OEX) was heading to the moon. However, a more circumspect examination shows that none of our major technical indicators is on a buy signal. In fact, one of our oscillators is on the brink of a sell signal. So, despite rising prices over the last week, we can't be bullish for the intermediate term.
The graphs of the equity-only put-call ratios show a rising put- call ratio (Figures 1 and 2). Thus, these remain on sell signals. Now, it is true that they are starting to get rather "high" on their charts especially the normal put call ratio. This is a precursor to a buy signal at some point, but only when they roll over and begin to head downward. There is no "rule" that says they can't go much higher before that happens.<<< |
