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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: sun-tzu who wrote (40426)	5/21/2003 10:18:35 AM
From: orkrious	Respond to of 57110

initial P/C this am on the high side. cboe.com something I never understood is why 1.0 is considered high. Intuitively it should be neutral. Significantly above 1 should be bullish and below 1 bearish.

To: sun-tzu who wrote (40426)	5/21/2003 10:32:50 AM
From: orkrious	Read Replies (2) \| Respond to of 57110

From Jay Shartsis, StreetInsight thestreet.com Down Goes the Put/Call Ratio 05/21/03 10:26 AM EDT It's had a vertical drop in the last two weeks. Some comments on the put/call ratio for the entire market are in order here. First, the important 21-day equity put/call ratio hit 0.58 last week. That's a lot of call-buying, the most in a year and a half. Looking at its chart, one sees a vertical drop in this ratio over the past two weeks, a "give-up" phase for the bears, something that happened at market tops. The 21-day "dollar-weighted" put/call ratio dropped to about 49 cents in puts traded for every $1 in calls. This ratio was $1.83 at last July's market bottom, $1.65 at October market lows and near $1.18 at the market bottom this March. The current readings are at levels not seen since January 2000, and they reflect a very high level of option-trader bullishness. I rate this ratio as the most dangerous-looking in its message, and is quite enough to chill any bullish stance here. No positions