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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: TechTrader42 who wrote (14482)8/10/2001 11:26:44 AM
From: bob wallace  Read Replies (1) of 52237
 
here's another complacency view:
from RealMoney:

Jay Shartsis
MARKET
8/10/01 11:05 AM ET
A big problem in my indicator set is one very few
people know about. It is the "mirror image" OEX
put/call ratio. It compares out of the money OEX
puts to calls. At market bottoms one sees the puts
bid way up vs. the calls. At important lows, the
puts can be 10 times the price of the calls. At
market tops, the puts are maybe 40% or so
higher than the puts. Right now with the OEX at
602, the Aug 585 put is $2.10 and its mirror
image call, the Aug 620 is $1.45. This is quite
bearish because it indicates a high level of
complacency.
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