Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (46755)	7/22/2002 12:49:50 PM
From: AllansAlias	Read Replies (5) \| Respond to of 209892

I am a little amazed. Now that we are a whisker away from SPX 800, one needs to ask (well, at least I do) whether we have had the sort of capitulation we need to jump up outta here. I know things are extremely oversold, I can see the VIX, I hear the gloomy news stories, but you know something, I would have thought things would be WAY worse on the sentiment front when we kissed SPX 800. I am sort of amazed.

To: yard_man who wrote (46755)	7/22/2002 12:51:41 PM
From: John Madarasz	Respond to of 209892

Go for it daddy...you're in the groove, and that's what matters... The spread between call and put open interest in the OEX ballooned to a bearish 143,000 contracts on Friday. The only other times we've seen this spread inverted to such a degree was back in mid 1990 and in September/October of 1987. Often when the spread inverts (call interest greater than put interest) so close to expiration, the market ends up trending lower and forming a bottom on the Monday following expiration. In other words, a down day on Monday could end up marking a short-term bottom in the market, while a rally on Monday would have questionable lasting power. Also keep in mind that it would add to the bearish outlook if call interest continues to outpace put interest by 75,000 or more contracts following Friday's expiration, as it would signal the inverted spread will remain in effect.