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

To: el paradisio who wrote (45935)	4/13/2000 10:25:00 AM
From: 10K a day	Read Replies (1) \| Respond to of 99985

I think FAT and HAPPY Put Owners will panic...

To: el paradisio who wrote (45935)	4/13/2000 11:59:00 AM
From: Andy H	Read Replies (1) \| Respond to of 99985

Yes, .57 was the combined ratio including index options for CBOE. The .50 was for equity only. Note that equity options volume was over six times that of index volume. For example, at the 10/27/97 low, index volume was more than 1/2 of the equity volume. The dryup of index volume has lowered the combined PC ratios by quite a bit over the last two years, which explains, in part, the extraordinary run of low ratios. BTW the .13 IBD put call premium ratio of 8/31/98 was the only time that it did not call the exact low in the market over the last 10 years, though it was close enough and the best stocks hit their lows the next morning vs. the October low. I wouldn't bet against this indicator by being short right now. The divergence between the NAZ and the NYSE is playing havoc with the indicators I've used over the last 20 years, since many are based on NYSE only, making it impossible for each of my favorite indicators to signal simultaneously an intermediate term bottom. My gut is that most of the top semiconductor stocks will be much higher no later than the first four trading days of May.