The equity and even index put/call ratios on the ISE are very low, which is puzzling considering the big downdraft today. The put/call ratio is usually a contrarian indicator, but the put/call ratios have been correct in predicting the future trend of the market lately. There was a lot of call activity at the lows in early July.
I still believe this isn't the start of the downtrend, but there is probably only one rally left before we go down for the count and head for 1040.
still have loads of september and november iwm puts.....hope you remember...
ReplyDeleteselling half of september puts today
I went 100% long again, after selling & repurchasing.
ReplyDeleteISEE is more of a call/put ratio, actually a call/put %. I've found that the previous day can be faded if it is an extreme. True that yesterday the put buyers were right, but it was only slightly tilted that way.
ReplyDelete