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Strategies & Market Trends : Technical Analysis With Charts

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From: MACD X	10/4/2005 9:24:07 PM
	of 6865

ONE VERY GOOD REASON THE MARKET COULD RALLY finance.yahoo.com By looking at options open interest there appears to be a lop side edge of puts against calls. If my count of open interest are correcty on put contracts it appears there are near 1 million contract that are active at this point. As for calls there are only 1/2 million contracts that are open. Institution have every reasons to rally the markets with this much put poistion active. Institutions are the primary writers of options contracts. They get paid when options expire out of the money and worthless. With this much out of balance and overly bearish poistions against the market it is unlikely the market will fall a lot under these conditions. This is a sentiment gauge and it is overly bearish from my point of view.

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