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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Rick Storm who wrote (16668)	5/26/2001 11:08:09 PM
From: Zeev Hed	Respond to of 30051

I do not find a good "inverse correlation" between Index P/C ratio and market directions (namely, "people in the know" indeed buying more index puts than call as indications of tops and vice versa). It is possible that in index trading both sides are "sophisticated" sellers and buyers, but in equities options, the buyers are typically J6P and the sellers the professional traders. Maybe very large extremes, like ratio above 5 could be triggers, but I have not studied that series historical behavior. Zeev