To: Cathedra who wrote (25390 ) 9/9/1999 7:18:00 PM From: pater tenebrarum Read Replies (3) | Respond to
Tom, i have noticed the extremely low index p/c ratios today...i suspect this is directly related to tomorrows PPI release, based on the fact that with the exception of the april release every PPI and CPI release this year has produced a major rally. as such, this is NOT a good sign, as normally the tendency to buy protective puts is much more pronounced ahead of important economic data. you have to keep in mind though that p/c ratios have been rather high recently when averaged out. one day is not necessarily very meaningful in this context. there are however a few other slightly alarming developments: one is that the NYSE short interest ratio has plummeted to 3,90 which is a multi year low and NYSE members have now been net sellers for 4 weeks in a row. this smacks of capitulation by the bears coupled with selling by the smart money, not exactly a comforting thought. money has also begun to leave money market funds (-$11bn over the last two weeks),and while the amounts are still modest, this dents the sidelines money argument a bit.
