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[hedgehawk]

Dow is in fuego up 5 days in a row, time for a pull back. OEX P/C is at 1.74 on its way to 1.8 which seems to be a significant thresh hold. Other than the obvious double top, I feel the market is showing signs of distribution as todays weak close seemed to indicate people did not want to hold positions over night as futures go south in the evenings as of late. I have leveraged shorts on OIH, other high beta stocks @ 52 week highs and DIA / SPY. It also seems that if you are on the wrong side of vol that the market gives you a chance to exit on the gap fill. So shorts here seem like good risk / reward.


http://www.sentiment...description.htm

Market turning points often coincide with extreme OEX put/call readings - when the put/call ratio is low, we are often near a market low. Conversely, when the put/call ratio is high, meaning OEX traders are betting heavily on a market drop, we often see market declines shortly afterward.

*Standard Deviation. See below for a description of standard deviation for the daily put/call reading...



68% of readings (1 standard deviation) should be between .81 and 1.57

95% of readings (2 standard deviations) should be between .43 and 1.95

99% of readings (3 standard deviations) should be between .05 and 2.33