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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (12861)	6/17/2002 6:33:45 PM
From: yard_man	Read Replies (1) \| Respond to of 19219

good post. One also has to be careful when you get close to expiry with either as well -- i.e. index or equity p/c.

To: Zeev Hed who wrote (12861)	6/18/2002 3:41:12 AM
From: J.T.	Respond to of 19219

I find the P/C ratio as a stand alone has little if any predictive value. On 9/20/01, the real capitulation day before THE BOTTOM on 9/21, there were more total calls than puts bought in the second, third and fourth half hour of trading. On the day of THE BOTTOM, the first five half hours of trading totaled MORE CALLS THAN PUTS. The P/C ratio on the CBOE is sometimes skewed and needs to be backtested against the OEX P/C ratio to provide an accurate read. Ralph Bloch does not use the CBOE P/C's. He utilizes the OEX P/C ratio. He once gave the answer why in one of his updates but at this point it eludes me. Best Regards, J.T.