High Tolerance Plasticity Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : High Tolerance Plasticity

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Zeev Hed who wrote (14359)	6/9/2002 2:22:48 AM
From: Warpfactor	of 23153

Equity P/C ratio, from Don Hays website: "As the name implies this indicator simply compares the daily volume of the equity puts to that of the calls that are traded on the CBOE. This data is given each day on the CBOE's excellent website. It is an excellent way to measure points of overdone optimism and pessimism. It is a contrary indictor, and the signal attempts to go exactly opposite to the moods of these usually wrong option traders. This indicator has been very good in the past on a penetration of the 72% level. Very rarely, this will move to 90%, and that has been a sign that a significant bottom is extremely close." Don Hays tracks closing equity P/C ratio on his site, with a chart from 10/2000. Only 2 times has this indicator exceeded 1.00 since that time. In September of last year was one such time - actually closing over 1.00 on what appears to be 3 separate dates following the WTC Islamist action. The other time seems to have been in mid-February of this year. 0.90 hits have been much more frequent since 10/2000, and have not always led to reversals. Just like the ARMS Index, it may be a good idea to bump up this indicator to 1.00 in our current bearish environment.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next