Chart of the Week: The 10 day moving put/call ratio hit

Thursday, November 18, 2004 | 11:11 AM

Several indicators suggest we are somewhat overdue for a pullback.

The 10 day moving put/call ratio hit its lowest level in over a year; Other indicators we track all suggest that the broad post-election enthusiasm has reached a short term peak; That simply implies that the present overbought condition (and somewhat complacent sentiment) needs a little backing and filling to cool the fires down.

Several other indicators warrant caution here: The Arms index (10 day MA) is at 0.96, the VIX is a 13.25, AAII sentiment is near 60%.

None of these are fatal to the advance, they merely suggest a pause beginning sometime over the next 10 days would be well warranted.

All of the factors we mentioned previously -- an underinvested hedge fund community, seasonality, cash on the sidelines and mutual fund performance anxiety -- suggest that the retracement will be mild and relatively short in duration.

Put Call Ratio, 10 Day Moving Avg (click for larger chart)


Source: Redwood Technimentals

Random Items

What's Behind Edward C. Prescott's Nobel Prize?
Alleged Microsoft Cover-Up
TiVo Will No Longer Skip Past Advertisers
US Finds Possible Mad Cow Case in Inconclusive Test
ETF Investors Going for Gold
Humans Were Born to Run (dogs, horses, hyenas too)

Quote of the Day

"You cannot escape the responsibility of tomorrow by evading it today."
~ Abraham Lincoln

Thursday, November 18, 2004 | 11:11 AM | Permalink | Comments (0) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference Chart of the Week: The 10 day moving put/call ratio hit :


The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™