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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 671.910.0%Nov 14 4:00 PM EST

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To: HairBall who wrote (29948)10/15/1999 1:53:00 PM
From: Walt Deemer  Read Replies (1) of 99985
 
Please explain your take on the high put/call ratios

Regarded as contrary sentiment indicators. High ratios are considered bullish 'cause they reflect 1) too much put volume (too much bearishness) or 2) too little call volume (not enough bullishness). High ratios usually occur at bottoms, although one could ask "how high is up?" here -- and I'd be happier if I knew how much of the put volume was created by opening (new) transactions and how much by closing transactions.

But taken at face value, they're VERY bullish numbers...

-- WD

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