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


To: pater tenebrarum who wrote (10927)4/14/1999 8:24:00 AM
From: dealmakr   Respond to of 99985
 
Heinz,

Thanks for the link, also thanks Haim.

I mainly trade the OEX intraday, but when the ratios get out of line it may signal a trend change. On the equity side, I would look for a number less than .3 for a good short term bearish indicator. On the OEX a number of 1.1 or less. The OEX put/call data has been skewed IMHO for a long time as a result of high premiums on puts and the big money boys buying insurance and hedging by selling OTM puts against those nearer the strike. I think that I will keep a log of the ratios for some reference.

Good Trading

Dave



To: pater tenebrarum who wrote (10927)4/14/1999 8:34:00 AM
From: Gersh Avery  Read Replies (1) | Respond to of 99985
 
Hi Heinz

I've been meaning to ask you .. have you been tracking open interest?

That would show the pattern if there were a large batch of OEX puts being written, which would be a bullish viewpoint, or being purchased, which would be a bearish viewpoint.

Gersh