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To: Cathedra who wrote (34585)12/2/1999 6:14:00 PM
From: pater tenebrarum  Respond to of 99985
 
Tom, this always happens just before important economic releases, but i agree it usually means we will rally on the economic data that are coming out. still, the overall put/call ratios are near all time lows. the 10-dma of the CBOE p/c ratio recently hit the lowest point since '87.
another facet of this is that in '87 the index p/c ratios also went up sharply just before the market tanked.

however, this apparent concern about tomorrow's data probably points to a rally.

regards,

hb



To: Cathedra who wrote (34585)12/2/1999 7:06:00 PM
From: Les H  Read Replies (1) | Respond to of 99985
 
There's been extremely high index hedging thanks to Y2K. If you look at the Nasdaq 100, the ratio is much more lopsided in favor of puts, sometimes 4-to-1 or 6-to-1 in recent days.