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

To: bobby beara who wrote (82391)	11/10/2001 12:29:34 PM
From: t2	Read Replies (1) \| Respond to of 99985

bobby, That options commentary really confused. However, the other indicators are important, too, of course. The equity-only put-call ratios are all trending lower still. That's bullish. There won't be a sell signal until they roll over and begin to trend higher. That could happen at any time, of course, but experience has shown that it is best not to try to anticipate such a change of direction in these put-call ratios. In fact, when they are near the edge of their graphs as they are now near the bottom of the graph that is often when some of the strongest moves occur This is going against what I have been reading lately. A low P/C being bullish? The writer does make sense because it is pretty difficult to see a rally when there is so much fear indicated in the P/C. There must also be increasingly more covered call activity, possibly pushing the ratio lower for the past few days. Trying to guage what this means for expiration week. I am placing my bet on a monster rally this coming week as many face the prospect of losing their shares that may also have low cost bases and therefore end up buying back the calls. Of course that means a lower P/C. If one looks at it that way, the lower P/C this week makes a lot of sense. Just one angle.