Market Sentiment Alert for Tuesday, September 14th, 2004
1) As the Cash Markets closed today, our Dollar-weighted Put/Call Ratio ($wPCR) Engine picked the following stocks as good SHORT candidates due to their BEARISH (very high $wP/C Ratio) reading:
EMC Corp. (EMC) with a $wPCR of 14.9 (click for its $wPCR chart www.hamzeianalytics.com/charts/EMC.png),
General Motors (GM) with a $wPCR of 4.7 (click for its $wPCR chart www.hamzeianalytics.com/charts/GM.png),
Forest Labs (FRX) with a $wPCR of 3.7 (click for its $wPCR chart www.hamzeianalytics.com/charts/FRX.png);
2) And, our Dollar-weighted Put/Call Ratio Engine picked the following stocks as good LONG candidates due to their BULLISH (very low $wP/C Ratio) reading:
Pulte Homes (PHM) with a $wPCR of 0.03 (click here for its $wPCR chart www.hamzeianalytics.com/charts/PHM.png),
Lucent Technologies (LU) with a $wPCR of 0.04 (click here for its $wPCR chart www.hamzeianalytics.com/charts/LU.png), and
Boston Scientific (BSX) with a $wPCR of 0.07 (click here for its $wPCR chart www.hamzeianalytics.com/charts/BSX.png).
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Please note that dollar-weighted put/call ratio's forward-looking window is from one to three trading days from the signal day (why? in a capsule form, it has to do with 3-day settlement pressure on the market makers). Once you are in the trade, you should monitor the up-to-date dollar-weighted put/call ratio reading as confirmation of the trade's direction; or, in case of reversal of the dollar-weighted put/call ratio reading, as an exit signal.
Market Sentiment Alert for Tuesday, September 14th
Started by
TTHQ Staff
, Sep 15 2004 08:03 AM
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