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Market Sentiment Alerts 6/9/5


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#1 TTHQ Staff

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Posted 09 June 2005 - 09:59 AM

Market Sentiment alerts
Wednesday, June 8th, 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
BBH BioTech HOLDRS 2.68 mildly BEARISH $wPCR Chart
SMH Semiconductor HOLDRS 0.96 NEUTRAL $wPCR Chart
XLF Financial Select Sector SPDR 2.00 mildly BEARISH $wPCR Chart
XLE Energy Select Sector SPDR 1.25 NEUTRAL $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
PETM Petsmart Inc 18.06 $wPCR Chart
VRTS Veritas Software Corp 8.58 $wPCR Chart
GENZ Genzyme Corp 7.71 $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
RIG TransOcean Inc 0.09 $wPCR Chart
ECA EnCana Corp 0.09 $wPCR Chart
MU Micron Technology Inc 0.12 $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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