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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Logistics who wrote (10511)	4/11/1999 1:28:00 PM
From: umbro	Read Replies (1) \| Respond to of 99985

Bob Rack of Schaeffer's Investment Research had a key contrarian options-related indicator flashing bullish late last week. Both Wednesday and Thursday, the put-call ratio in S&P 100 options hit 1.68:1, with the index up 1.1% and 0.99%, respectively. Rack reports that of the 32 previous times in the 1990s that the single-day ratio exceeded 1.6 with the market gaining on the day, the OEX has averaged a 4% gain over the next month. When the day's gain has been greater than 0.5%, the subsequent OEX monthly gain has been 5%. What's more, the only time this decade before Wednesday that the ratio topped 1.6 with an index gain of more than 1% was in October 1998. The OEX went on to jump 6.5% in the next month. (source: Barron's Striking Price)