Excessive dumping technically and fundamentally! Pervasive irrationality?
Hope you find below helpful.
Good luck everyone ;-). forte, paul,Jeff, Rick: you too.
di
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Received 5/17/00.
<<<Up To The Minute Market Commentary From Lawrence McMillan
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Our "best" indicator -- the equity-only put-call ratio -- has just flashed a buy signal. This means that pessimism (put buying) had built up to such high levels that a "consensus" of bearishness was reached. Since this is a contrarian indicator, we know that this means we should buy the market -- when everyone else has been buying puts. It reached levels that were comparable to those seen last October, a level which launched a very good rally at that time.
Meanwhile, the S&P 500 futures option put-call ratio
is at a very high level, too, indicating a buy signal is near in that market. In fact, it has reached levels comparable to those of the severe market selloff in 1998. Again -- another good buy signal.
In addition, our oscillator remains on a buy signal. It is based on market breadth (advances minus declines) and it indicates that this current move has some more room to run on the upside before it gets short-term overbought.
Finally, implied volatility of index options ($OEX and QQQ) both peaked on April 14th, and then had secondary peaks in early May. Those are bullish signals, as well.
Taken altogether, these indicators are saying "BUY!". Therefore, (aggressive) bullish positions can be taken -- especially in $OEX, $SPX, and the big-cap stocks that dominate those indices.
As for NASDAQ, things may still be a little dicey for some of the more severely beaten-down stocks, but the "bigger" names should be okay.>>>
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