[RT] Put Call Ratio

["EarlA" <earl.a@xxxxxxxxxx>]

Bob, I've never been able to get much from using P/C as a timing indicator
but I keep looking. I gave your formula a spin. Attached Daily and 60 minute
charts are from QCharts:

Black: QC:CallVal /(QC:CallVal +QC:PutVal)
Blue: S&P Close price

I don't see a strong correlation between tops and bottoms in the P/C and
S&P. Am I missing something here? Is there more to using this than simple
matching extremes?

Earl

----- Original Message -----
From: "BobR" <bobrabcd@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, January 07, 2003 3:50 PM
Subject: Re: [RT] setups


Good observation and good question.  Sentiment has been something I've
worked on to better pick the trades than time and support/resistance and to
add positon trading to the daytrading activity.  Here is one chart that
might answer your question about sentiment from a contrary point of view.

Another short setup occurs when the dollar weighted $C/($C+$P) composite(red
line) reaches the 0.7 to 0.75 level as it did late on Tuesday.  Such a level
can represent too much bullishness, or the end of bullishness if it occurs
at the end of an uptrend.  In either case it increases the odds of
consolidation and or price erosion in the near future.  This level comes
after a less than 0.25 ratio low on 12/27.  This also completes a 6 day
runup in call premium and rundown in put premium.  Such high levels are seen
at index high pivot points.  Its just kinda comforting to know what the
environment is.


bobr
  ----- Original Message -----
  From: Kent Rollins
  To: realtraders@xxxxxxxxxxxxxxx
  Sent: Tuesday, January 07, 2003 2:22 PM
  Subject: Re: [RT] setups


  I've seen many, many people drawing head-and-shoulders formations
  (non-inverted) on daily charts of the last month or so.  Not just in this
  forum but also on free and pay sites.  Aren't H&S formations supposed to
be
  topping formations, not intermediate bear market formations?  And if those
  same people tried, could they find and inverted H&S formation on the
current
  daily/weekly charts?  What does this say about market sentiment?

  Kent


  ----- Original Message -----
  From: "BobR" <bobrabcd@xxxxxxxxxxxxx>
  To: <MedianLine@xxxxxxxxxxxxxxx>; <realtraders@xxxxxxxxxxxxxxx>
  Sent: Tuesday, January 07, 2003 2:19 PM
  Subject: [RT] setups


  OK, this is the setup I am looking at for a long exit/short entry.  Today
  marks the 4th day of a positive NDX net percent up down volume (up -
  down)/total.  A lower high on the 4th bar of a 4 bar set with a higher
high
  on the NDX may be a prelude to a down day the next day...at least that is
  the thesis being examined.  Perhaps it is reinventing the wheel, but
  discovery sure is fun as is the journey.  I had an options system that
could
  quintuple the account in 5 weeks of OEX trading.  It was so boring I quite
  trading it, |;-) .

  bobr

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