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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Rick Storm who wrote (42441)	3/21/2002 12:21:12 AM
From: mishedlo	Respond to of 99280

I see no use whatsoever in daily PC ratio. AJ however disagrees and sees a corerelation. He has tracked this and I have not but I will answer the best I can. Look at a chart of daily PC ratios and see if you can make heads or tails out of it. I can not. If there is a correleation, I believe it is accidental. In that, I mean only the current month options matter, and only variations to current open interest matters. The MMs worry about next month, well next month. If 5K calls were closed, the PC ratio includes that in the daily CALLs figure, regardless of month and regardless of the fact that they were closed not opened. Of what use is that? These things may balance out, and perhaps they do if AJ sees a correlation. IMHO any correlation is accidental in the way the figures are compiled. I prefer to look at option chains on QQQ MSFT INTC and CSCO to see what really is going on. The rest is noise IMO. Making a short term determination based on daily PC ratio is no more relaiable than looking at daily VIX number and deciding whether or not the market is headed down tomorrow. (sheeesh do I have an aggrement in common with limetx here?) M