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 : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (32027)	12/28/1997 4:58:00 PM
From: j g cordes	Read Replies (1) \| Respond to of 58727

Don and Patrick, I've best used the p/c ratio this way. Perhaps you can shed some light on why it works well sometimes.. When the p/c ratio is high (as it is now) there is a contrary move to the positive in the averages, however it is short lived... perhaps a week. After it starts to relax thats when the averages actually go in the direction of the ratio.. almost as if its a leading indicator. Have thought of doing a slower moving average of it, but never took the time.. I'd assume there might be something like a 5-9 day moa of the p/c that precedes the market average its tracking. I'd also assume that the more extreme its reading the greater its potential for volatility to "norm" the relationship. Jim