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Attached are a couple of end of day charts.
One is the $C/($C+$P)composite of the AMEX, CBOE, PSE, PHLX.
It is a noisy ratio and could use some smoothing
for sure.
Here are some ways to look at the Composite dollar
weighted ratio.
In index uptrends the ratio swings moreso between
0.5 and 0.7.
In index downtrends the ratio swings between 0.5
and 0.2.
The ratio may peak before the index peaks and then
forms a divergence as price peaks.
Likewise at price bottoms a divergence may occur,
or may be coincident.
If anything, the extreme levels of 0.7 and 0.3
should be warning flags on the dollar weighted ratio.
The second chart is the CBOE Equity Call / Put
ratio with some 21 period Bollenger Bands with +,- 1 std dev that help
define the extremes.
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
EarlA
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Tuesday, January 07, 2003 4:10
PM
Subject: Re: [RT] Put Call Ratio (with
corrected SP cash)
Sorry, the first charts contained incorrect plot for the
SP.Earl----- Original Message -----From: "EarlA" <<A
href="mailto:earl.a@xxxxxxxxxx";>earl.a@xxxxxxxxxx>To: <<A
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx>Sent:
Tuesday, January 07, 2003 5:05 PMSubject: [RT] Put Call
Ratio> 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 60minute> 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
andto> 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 alevel> 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 areseen> 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 inthis>
forum but also on free and pay sites. Aren't H&S formations supposed
to> be> topping formations, not intermediate bear
market formations? And ifthose> 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 thatis> 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 Iquite> trading it,
|;-) .>> bobr>> To
unsubscribe from this group, send an email to:>
realtraders-unsubscribe@xxxxxxxxxxxxxxx>>>>
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