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

To: dealmakr who wrote (12181)	4/28/1999 8:22:00 AM
From: pater tenebrarum	Respond to of 99985

David, the bearish ratio on individual equity options coupled with the bullish OEX ratio have been evident for some time now. so far the bullish implications have won out. if you take a look at decisionpoint.com you will note that generally the OEX ratio has been the more reliable indicator in the past. usually tops tend to arrive when this ratio also turns down. in recent sessions May out-of-the-money puts have been very popular, and yes, it is the big boys taking out insurance.again,this is normally bullish, as it indicates worry about the market's risk as well as unwillingness to sell the underlying stocks for fear of missing out on upside potential. having said all that, i have turned more cautious recently. this is due to the fact that the formidable OEX ratio is produced with very low overall volume on OEX options, making the signal questionable. open interest as you say bears watching, but is not unusual right now. regards, hb