Commentary--Lawrence McMillan for Thursday, August 10, 2000...
optionstrategist.com
Stock Market:
Despite what "feels" like a positive market over the past week or more, the broad market put-call ratios have failed to give buy signals.
The equity- only put-call ratio gave a sell signal in late July and has been trending higher ever since.
The equity-only weighted ratio and the NYSE put-call ratio show similar patterns, but the NASD ratio is on a clear sell signal.
Most of the other broad market ratios (QQQ, $NDX, S&P 500 futures) have similar patterns.
Consequently, we feel there is no need to be overly bullish until these ratios can begin trending downward as we would expect them to during a buy signal.
Our oscillator, which is based on market breadth, has moved up as breadth has improved lately. It now stands at about +130. It has already generated a couple of tradeable sell signals this year, but it would first have to rise above +200 to set up another one.<<< |
