I haven't followed the ISEE Sentiment Index for a long time. The previous 52 week low - I'm going to claim as being 66(closing basis) - right around the first week in July. It took a huge swing yesterday, and for the most part being short for today has paid off. It is supposed to be contrarian? Like the Put/Call Ratio? Looks like being an ET member and becoming educated and wiser from the great posts has set the public and traders on the never ending road to big $$$ profits. Big money has finally been tamed? Time will tell.... Value Time 8/22/06 63 16:15 58 15:30 55 14:30 122 13:30 132 12:30 127 11:30 112 10:30 Value Time 8/23/06 100 13:30 95 12:30 78 11:30 97 10:30 http://www.iseoptions.com/marketplace/statistics/sentiment_index.asp ISEE > 100 More customers have opened long call options than put options. Call options increase in value when the underlying stock price increases. ISEE < 100 More customers have opened long put options than call options. Put options increase in value when the underlying stock price decreases.
A lot of calls were bought into yesterday's close. I'm trying to find some correlation between it and indexes... it seems the indicator always peaks a day before it goes down, so it's interesting to see it go so high yesterday on a down day.
ISEE seems to be a random indicator. for example, previous 52 week low is 66 reached on July 3 2006, while it's top for the following month. market crashed right after it.