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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We are LONG the S&P-500