Friday, March 14, 2008


how long will the newsflow remain negative? who knows? but, the cboe one-day equity put/call ratio is at 1.16 today, which, if it closes at that level, will be the highest level of bearish sentiment since they took the qqqq and spy options out of this metric (at the end of '04, if i recall correctly).

that's a lot of negative sentiment, especially considering that the 5 and 20-dmas of the equity p/c ratio are both at all-time highs.

so, if the financial crises ever do settle down, the rubber-band is wound way tight for a reversal in the indices. just a thought.

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