Que.
A PC ratio of 1.39 is quite high.
Generally the market turns after a sustained period of P/C ratio close to .5.
The lower the better.
A prolonged period of .5 to .65 should do it.
Now, before the turn we see a spike in puts and 1.39 is a huge spike in puts. Oddly enough this spike in puts today was accompanied by a drop in the VIX. This does not amke much sense either.
The best I can come up with is the crooks hope to pin the market here for a few days. Plunging the VIX VXN so that the value of all options decreases. Calls close to the money and there are tons of them, will be worth less on a falling VIX. So many puts are so far out of the money it does not matter.
The other explanation I have is a delay factor.
We noticed this on OCT. The market kept plunging as long as there were put buyers out there. As soon as they lightened up, we reversed.
Still a one day spike at the open to 1.39 is bothersome to me. I am hoping Zeev has some thoughts on this.
stockcharts.com[l,a]daclyymy[pc13!c200!c50][vc60][iUc20!Lh14,3!Li14,3!Le12,26,9]
VXN plunged the other day for a brief period.
Here is a chart for the VIX.
Testing and reversing off the 200EMA.
stockcharts.com[l,a]daclyymy[pc13!c200!c50][vc60][iUc20!Lh14,3!Li14,3!Le12,26,9]
I am hoping Zeev can comment on these charts and ideas.
M |
