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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (42698)	3/10/2000 6:15:00 AM
From: LaVerne E. Olney	Read Replies (1) \| Respond to of 99985

Here's a couple Call-Put Charts (note inverse of Put-Call): Equity Call-Put Ratio (10-day moving average): users.intermediatn.net Hines Ratio - Call-Put TRIN (10-day moving average): users.intermediatn.net Stocks & Commodities V. 10:4 (178-183): SIDEBAR: USING OPTION RATIOS USING OPTION RATIOS To many traders and investors, the limited-risk aspect of the purchase of both call and put ratios is appealing. Many market followers believe that when the major activity is concentrated in either calls (bullish expectations) or puts (bearish expectations), extremes in crowd psychology will appear. An overabundance of optimism usually accompanies a market top, while market bottoms are typified by a preponderance of pessimism. The conventional method for gauging bullish and bearish sentiment in regard to options activity is to keep a ratio of the volume of call options traded compared with the volume of put options traded. Usually a 20-day moving average of this ratio is kept, as the day-to-day reading of this ratio can be very volatile. Call / put ratio = Call volume / Put volume For every buyer of an option, there is a seller (writer) of that option. It will be helpful then to note whether the volume activity is an indication of new buyers being met by new sellers or whether the volume actually represents traders who are liquidating positions. Combining open interest (the amount of outstanding contracts at the end of the trading session) with the call/put ratio of volume provides this additional information. This is called the call/put TRIN: Call volume / Call open interest ---------------------------------------- = Call / put TRIN (Hines Ratio) Put volume / Put open interest Other sentiment charts can still be found at users.intermediatn.net leo

To: Les H who wrote (42698)	3/11/2000 8:48:00 PM
From: Don Green	Read Replies (1) \| Respond to of 99985

EPA To Sound Optimistic Note In March Economic Report Sunday, March 12, 2000 TOKYO (Nikkei)--The Economic Planning Agency decided Saturday to state in its March report that the economy is showing "signs of staging a self-sustained recovery," The Nihon Keizai Shimbun has learned. It will be the first use of the word "recovery" in the monthly report since the current slump began in April 1997. The EPA now takes the view that corporate earnings and capital investment have begun improving and that the economy, therefore, is picking up, sustained mainly by private-sector demand. The EPA's upbeat reading of the situation is aimed at preventing business and consumer sentiment from worsening further as the gross domestic product figure for October-December, to be announced Monday, is expected to contract for the second straight quarter. EPA Director General Taichi Sakaiya is due to unveil the report at Friday's cabinet meeting. The March report will mark the first upgrade in the EPA's reading of the economy since it mentioned a "moderate economic improvement" in October 1999. The report will note that consumer spending is still marking time and that performance on the housing construction front is "not so strong." But it will say that "corporate capital investment is recovering across a wide range of industries and its decline is, on the whole, coming to an end." The report will also point out an end to inventory reduction and an improvement in corporate earnings, sources at the agency said. The economy bottomed out in April-June last year thanks to generous fiscal spending, tax cuts and the Bank of Japan's easy money policy but it has shown few signs of improvement since then. But industrial output posted year-on-year gains in January for the seventh month in a row as Asian economies began to improve and import more from Japan. Firms capitalized at 10 million yen or more, excluding those in the financial and insurance sectors, reported an average 41.8% year-on-year increase in pretax profit in October-December. In the same quarter the rate of decline in capital investment narrowed to 0.7%. (The Nihon Keizai Shimbun Sunday edition)