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Market Sentiment Alerts for 2/23/05


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#1 TTHQ Staff

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Posted 23 February 2005 - 03:56 PM

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Tuesday, February 22nd, 2005

1) At the Close of Today, our Dollar-weighted Put/Call Ratios ($wPCR) for Broad-basedMarket Indices (where very high $wPCR readings are BULLISH) and Narrow-based SectorIndices (where very low $wPCR readings are BULLISH) were:
Symbol Name $wPCR Signal Chart Reference
SPX S&P-500 2.37 BEARISH $wPCR Chart
NDX NASDAQ-100 1.30 BEARISH $wPCR Chart
BBH BioTech HOLDRS 1.19 NEUTRAL $wPCR Chart
SMH Semiconductor HOLDRS 6.00 BEARISH $wPCR Chart
XLF Financial Select Sector SPDR 1.08 NEUTRAL $wPCR Chart
XLE Energy Select Sector SPDR 0.21 BULLISH No $wPCR Chart

2) At the Close of Today, our Dollar-weighted Put/Call Ratio ($wPCR) Engine picked thefollowing stocks as good SHORT candidates due to their BEARISH (very high $w P/CRatio) reading:
Symbol Name $wPCR Chart Reference
FRE Federal Home Loan Mtg Corp. 10.00 $wPCR Chart
PDLI Protein Design Labs 4.85 $wPCR Chart
BSC Bear Stearn & Co. 3.80 $wPCR Chart

3) And, our Dollar-weighted Put/Call Ratio Engine picked the following stocks as goodLONG candidates due to their BULLISH (very low $w P/C Ratio) reading:
Symbol Name $wPCR Chart Reference
HMY Harmony Gold Mng Co ADR 0.06 $wPCR Chart
MU Micron Technology 0.06 $wPCR Chart
ADI Analog Devices 0.17 $wPCR Chart


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Please note that dollar-weighted put/call ratio's forward-looking window is from one tothree trading days from the signal day (why? in a capsule form, it has to do the pressurethe options market makers are under to stay delta neutral while dealing with the 3-daystock settlement rule). Once you are in the trade, you should monitor the up-to-datedollar-weighted put/call ratio reading as confirmation of the trade's direction; or, incase of reversal of the dollar-weighted put/call ratio reading, as an exit signal.

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