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Strategies & Market Trends : Classic TA Workplace

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To: Paul Shread who wrote (53513)9/17/2002 12:12:40 PM
From: John Madarasz  Read Replies (2) of 209892
 
intersting anecdote re: short term cboe p/c signals

The CBOE equity put/call ratio closed at a high .99 on
Monday, reflecting a solid amount of put activity. While you might be tempted
to view this as bullish, high equity put/call ratios have had a rather poor
record at forecasting a rally in recent times. Since the beginning of the
year, for instance, an equity put/call ratio over .90 has actually led to more
down days (4) than up days (3). And during all of 2001, the record was a
similarly unimpressive 4-4 at calling for a rally the next day.
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