CBOE total exchange put/call ratio suggests equity rally ahead

Discussion in 'Trading' started by ASusilovic, Jun 15, 2011.

  1. Good point!
  2. Locutus


    Miles ahead of you.


    It also has nothing to do with the VIX being "reliable" (whatever that means). The fact the VIX is not going up just means that even though a lot of people are frantically buying put options, there are quite a few market participants who are pretty enthusiastic about offering options/premium shorts which is why prices of put options are not increasing regardless of pretty heavy demand.

    This decline really has all the makings of a proper sideways shakeout of the weak hands and those can and tend to last for quite some time. Of course the ones who bought put insurance aren't going to sell their securities so the shakeout should be in a reasonably late phase now. Intraday P/C also suggests pretty maximum bearishness at this time, so I do expect the final figure to break down even more than it already has.
  3. "CBOE Volume and Put/Call Ratio data is provided for informational purposes only"

    Nowhere does it say that it is a reliable barometer.

  4. Locutus


    Wait, you only look at indicators which say "GUARANTEED PREDICTIVE POWER!!!" on the box? All right, to each his own.
  5. sure, all built by yours truly
  6. Thanks. It all depends however who are the call/put buyers, the pros or the crowd?

  7. VIX is working again :)
  8. What about the $CPCE suggests that a rally is coming?
  9. #10     Jun 15, 2011