Usually you get high put/call ratios during down days, but today we're up more than 1/2 percent and there is high put/call ratios on the CBOE, hitting 1.06 put/call, while over at the ISE, the ISE opening put/call ratio is at 1.92, which is about an extreme a reading as you will get. It seems like the shorts are selling the bounce and portfolio managers are hedging heavily here. It sets up a possible short squeeze higher into the nonfarm payrolls number with the positive seasonality at the beginning of April.
These high put/call ratios on an up day only make me more bullish for this week.
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SPX is up after dovish comments from Yellen. But 10-yr yield is up and gold is down; both are running counter to potential monetary re-stimulus. Does it mean market is still biased to economy continued growth but market wants extra support before economy strength proves itself?
Gold is its own beast, it is most closely correlated to other commodities, especially crude oil, rather than bonds or stocks. But oddly, crude oil has been much stronger than gold lately.
Gold is in a bear market, but I find it hard to predict and usually don't trade it. Bonds are usually weak in April because of tax-related selling to fund tax payments and due to seasonally strong stock performance during the month.
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