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: AllansAlias who wrote (50665)	8/19/2002 1:27:07 PM
From: byhiselo	Read Replies (1) \| Respond to of 209892

<<odd that we have not seen a nice high tick yet in tech>> watching same and would think we need 2-3 days +1000 on the Naz before considering a top... also from realmoney.com this morn: Dan Fitzpatrick Put-Call Ratio 8/19/02 11:35 AM ET Jim, there is something else behind this rally, and its option expiration related. The dollar-weighted put-call ratio on the $SPX was as high as 17 this morning. That indicated a massive imbalance of put options in market maker's books, and will likely take several days for them to work off. Such a high dollar-weighted put-call ratio is very contrarian -- With such a high open interest in put options, who is left to commit money to the short side. I spoke with Fari Hamzei of HamzeiAnalytics.com, just prior to posting this, and he said that the ratio is already down to 10.5. Still tremendously bullish, but not as obscenely overweighted as 17. I noticed over the weekend that both the $NDX and the $SPX closed at their 50-day moving averages. In fact, I had written in my trading diary to expect a down-Monday as traders opened new short positions, anticipating a bounce off that moving average. Guess they were all thinking the same thing at the same time, and the crowd is rarely right at turning points.