Just like last week, top pickers have been piling into puts as if the market was flash crashing. The put/call ratio opened up at a sky high 1.34 this morning and the most recent reading at 11:30 stands at 1.15 which is still quite stubbornly high in the face of market strength.
Sorry bears a watched pot does not boil.
Just looking at the stream on Stocktwits, I definitely feel a lot of bulls are feeling pretty confident and someone of them even taunting the shorts. Which if you take the opposite position, usually it would imply a top is near. The 1200 is a possible target, but I feel I have no edge either way right now.
ReplyDeletegood observation Denis. As I aluded to yesterday, I think we could be in the topping process, however, it just seems that everytime the market has any kind of modest dip a lot of people seem to be rushing in with puts to either protect themselves or capitalize on this elusive correction and all it does is add support for the market and delay the day of reckoning. But I think we are getting quite close to the point where people will stop doing this after getting repeatidly burned and frustrated like this. Once that happens THEN the correction will come!
ReplyDeleteYep 1,200 is definitely a possibility now. Let's see how the market acts tomorrow. A gap up is pretty much in the cards now, but I think if the market close deep in the red tomorrow, we might have hit the high for the year already. But I am definitely not betting against this freight train until it shows me the direction.
ReplyDeleteBy the way, I noticed that in many of your posts you have mentioned the trusty put/call ratio that you use for short-term trading direction, is that part of subscription service offered by Decision Point or is there some free service out there that you track?
ReplyDeleteyou can get free data on the pcr by going here
ReplyDeletehttp://www.cboe.com/data/IntraDayVol.aspx