As we can see, the CBOE equity put/call ratio has done a pretty good job lately of catching market highs and lows, acting as a contrarian indicator. Although the ratio has come down with the November rally, we have not seen the low put/call levels that marked relative tops in September and October. At present, we're standing right about at the three-month median point in the put/call ratio, with sentiment not showing any extremes.
.
Posts
1 comments:
Isn't it possible that it's not the level of the put/call ratio that matters but the relative move from peak to trough (to peak). If so, then the current move down in the put/call ratio is significant and suggests the market is at or near some kind of top.
Would be great to see the chart for the entire year to get more perspective.
Post a Comment