<Net it out>????????
Now seriously lass, and why would I be doin' that? You wouldn't be in yer cups, would ja?
"Net it out"....Jasus, I had a hard enough time understanding the question in the furst place.
On the Equity side, it's been my experience it's usually low and it's been my experience that for all of Christiandom that's supposed to be a bearish indicator and rarely is. So from my point of view it's worthless.
Remember though, I think most indicators are worthless. 8 out of the top 10 popular indicators are concerned with "OHLC". Everyone uses them so of what possible use could OHLC truly be?
Next you have the Index P/C. I, personally, have only seen it work in hindsight. Some guru shows up 3 months after a major move and points out the damn P/C as if half the people in the market are not watching it at the time. Is there some reason why, day in day out there must be thousands of people watching P/C ratios and the one day they all blink the market moves like a rocket ship? 3 days, 3 weeks, 3 months later; when no one has come up with an explanation...."BeJabbers!!! We fergot the P/C ratio!!"
I don't think so, but that's the "catch-all" explanation.
To hell with the P/C ratio. Today we are in a market that has not retraced worth a damn. Depending on who you talk to...Me, I say 16 days. Don Sew says 12, I think. Kevin has a similar number to Don.
This market has pretty much gone straight up. What I think you have, is a situation where people have held onto puts purchased along the way....whether as a hedge or as speculation....and have not been able to get out of them. They cannot be exercised, they are OTM!!!
Calls, on the other hand, could easily have been closed out. Not only that, but only now are certain calls being traded where a week ago they were not even in existence. So while old calls may have been exercised, we still have the old puts as well as new ones at higher strikes. So, you have a situation where you must have a high P/C ratio.
Of course if I try to tell that to Barron's next month it would be too logical for them. |
