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Market Sentiment Alerts 12/11/5


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#1 TTHQ Staff

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Posted 11 December 2005 - 10:27 PM

Market Sentiment alerts
Published Sunday, December 11th, 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 0.58 BULLISH $wPCR Chart
SMH Semiconductor HOLDRS 1.00 NEUTRAL $wPCR Chart
XLF Financial Select Sector SPDR 0.28 BULLISH $wPCR Chart
XLE Energy Select Sector SPDR 1.55 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
JNPR Juniper Networks Inc. 10.56 $wPCR Chart
CMCSA Comcast Corp. CI A 7.92 $wPCR Chart
OSTK Overstock.com Inc. 2.88 $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
CVS CVS Corp. 0.03 $wPCR Chart
EMC EMC Corp. 0.04 $wPCR Chart
SBUX Starbucks Corp. 0.06 $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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