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

To: Crimson Ghost who wrote (44990)	4/4/2000 6:28:00 PM
From: pater tenebrarum	Read Replies (4) \| Respond to of 99985

George, we are certainly on the same page regarding today's action. remarkably, during the day, the put/call ratios went from reasonably firm to a level that is far from indicative of a true bottom...the volume in equity option calls was nearly at a record high with 1,2 mm contracts traded (the record is 1,3mm). we ended up with the CBOE total ratio at 0,55...high only by very recent standards. i was selling some of my puts today as they hit predetermined levels...and obviously i sold to market makers who are most likely now still sitting on same puts. i had e.g. a few LEH puts, my sale of which was the only trade in the contract all day long. in '98 at the bottom, LEH puts were heavily traded... my sale of INTC puts was the ONLY trade at that level...there was simply no interest in INTC puts when the stock was near it's lows today. i also sold some puts on the RUT, once again it was the only trade at that strike all day long. which reminds me, banks and brokers didn't get off the mat in today's rebound...another sign that we are likely not yet done. regards, hb