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Market Sentiment Alerts 5/31/5


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#1 TTHQ Staff

TTHQ Staff

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Posted 01 June 2005 - 08:00 AM

Market Sentiment alerts

For the last 90 days preceding the Feb.18th issue of Timer Digest, we were ranked FIFTH in theNation.


Tuesday, May 31st, 2005


1) At the Close of Tuesday, May 31st, our Dollar-weighted Put/Call Ratios ($wPCR)for Broad-based Market Indices (where very high $wPCR readings are BULLISH) andNarrow-based Sector Indices (where very low $wPCR readings are BULLISH) were:

Symbol Name $wPCR Signal Chart Reference
BBH BioTech HOLDRS 0.18 BULLISH $wPCR Chart
SMH Semiconductor HOLDRS 2.42 BEARISH $wPCR Chart
XLF Financial Select Sector SPDR 6.58 BEARISH $wPCR Chart
XLE Energy Select Sector SPDR 7.02 BEARISH 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
IBM International Business Machines Corp 16.95 $wPCR Chart
SYK Stryker Corp 10.19 $wPCR Chart
F Ford Motor Co. 8.48 $wPCR Chart


3) And, our Dollar-weighted Put/Call Ratio Engine picked the following stocks as good LONGcandidates due to their BULLISH (very low $w P/C Ratio) reading:

Symbol Name $wPCR Chart Reference
PMCS PMC-Sierra Inc 0.03 $wPCR Chart
FDRY Foundry Networks Inc 0.07 $wPCR Chart
VRSN Verisign Inc 0.07 $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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We are LONG the S&P-500Cash Index (SPX) from 1121.84 (closing price on 10/12/04) for the Timer of the YearCompetition monitored by the TimerDigest service.

For Calendar Year 2004, according to JimSchmidt of Timer Digest, we came in at 108.98, which ranks us at 11th, out ofapproximately 150 timers.