1 reply to this topic

[maineman]

mm

[qqqqtrdr]

Maineman: I don't think the CBOE Put/Call Ratio is giving us any type of signal now on long or short. I do fell the 10 or 15 day OEX Put/Call ratio is at extremes with the open interest 15-day MA is giving the market a strong sell signal. As a contrarian trader, this signal has worked in the past. Without this one signal the market and other indicators are showing good strength and the market should head higher. Four months ago I put a lot of credence on the OEX Put/Call ratio, so I'm short. It will be interesting to see how reliable the OEX Put/Call ratio is. I use the CBOE Put/Call Ratio 10-day average, but don't think this indicator can show any topping with the 10-day over .70. CBOE Put/Call 10-day average does not catch all tops. What is a good indicator is that when the 10-day CBOE Put/Call is under .70 and 10-day and the 10-day OEX Put/Call is over 1.40. This almost always indicates a top. Barry