Wednesday, December 23, 2009

Index Put/Call Closes Below Equity Put/Call

Due primarily to some massive trading in index calls in the last ½ hour of the day on Tuesday, the CBOE index put/call ratio actually finished lower than the CBOE equity put/call ratio. This has only ever happened 4 other times since they began tracking the data in 2003. It’s dangerous to try and draw conclusions from only 4 instances, but I found the results below interesting enough to share. I’ll continue to monitor this setup in the future to see if the early indications hold true.



As you can see, indications so far seem to suggest a downside edge both short and intermediate-term.

1 comment:

meco1999 said...

2 of those instances (Dec 07 & Jan 09) were during a bear market, so I'm not sure I would give much weight to those since we're in a bull trend now.