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To: sammy™ -_- who wrote (1369)	11/24/2006 2:27:48 PM
From: sammy™ -_-	Read Replies (1) \| Respond to of 1939

Take a look at the put/call ratio. Generally, a high put/call ratio means that investors are more cautious or worried. Not surprisingly, high put/call ratios often coincide with big market rallies because investors' fears have largely been discounted into the market. What hasn't been discounted, though, is the return of "good times," and when the good times come (and they inevitably do), a lot of buying develops. The opposite is true at market tops: At tops, put/call ratios tend to be low (along with investors' fears). Then the economic outlook suddenly weakens, along with profit expectations, and there's a sell-off