Seeking Alpha
Seeking Alpha Portfolio App for iPad
Finance
(1)
Market Currents

The put/call ratio on the S&P 500 moves to the danger zone - low enough to signal few enough...

  • Wednesday, August 29, 2012, 9:34 AM ET
    The put/call ratio on the S&P 500 moves to the danger zone - low enough to signal few enough are hedging against stocks falling as to almost assure that outcome. However, cautions Tommy Thornton, wait for indicator to turn higher before beginning to sell.
Track new comments on this story

This news story has 14 comments:

  • We are due...catalyst??
    29 Aug 2012, 09:36 AM Reply Like
  • That's why I never play that game. Something really good will happen if I short, and bad if I triple down long.
    29 Aug 2012, 09:41 AM Reply Like
  • bbro,

    Do you look at the OEX in combination with these other indicators?

    http://bit.ly/xQNJ14

    Seems to also be signalling a near-term top.
    29 Aug 2012, 10:27 AM Reply Like
  • The catalyst........ disappointment in Ben.
    Technical...Hit the Babson Reaction Line.
    Typically prices stall or reverse there....according to my article in April futures magazine.
    29 Aug 2012, 09:56 AM Reply Like
  • How will this affect who will become our President for four more years? How will this affect future economic policy? How did we get here in the first place? How are we going to keep all of the banks from taking over everything? How is the negative European economy affecting our economy? Once I hear the answers to all of the how's, what is someone going to do about it instead of blaming and condemning the other side? I am tired of politicians berating and criticizing the United States. We must have more positives going for us then we do negatives against us, right?
    29 Aug 2012, 10:14 AM Reply Like
  • Just the very fact that everyone is talking about the market sinking amidst two very boring weeks with no news and record low volume is a signal to buy. Markets drop quickly and without notice.

    Add the fact that S&P is on the verge of setting new highs, the dollar is getting cheaper from a mini euro rally and that the FED is flat out saying "we got your back", and we might even be looking at another short-term rally.
    29 Aug 2012, 10:20 AM Reply Like
  • If all is fair in love and war, what is fair about someone continually sticking their finger in my face? It seems like the Republicans are opearting out of pure desperation. Do you realize how much money we could be saving by re-electing the same President for another four years. Look at it this way. No one likes to admit that they may either have made a mistake or elected the wrong person in office. If Obama is not re-elected, how many people will be willing to admit that they made a mistake in the first election. Very few, if any at all. Obama back in office for four more years is a done deal.
    29 Aug 2012, 10:22 AM Reply Like
  • Obama four more years of his destruction of America.
    29 Aug 2012, 10:49 AM Reply Like
  • Especially with Hilary being his pick for VP.
    29 Aug 2012, 06:12 PM Reply Like
  • thanks
    29 Aug 2012, 12:34 PM Reply Like
  • Very cool graph. Key statement is " wait for indicator to turn higher before beginning to sell."

    Don't have to be the first on the train to make some $
    29 Aug 2012, 12:40 PM Reply Like
  • Here is another piece of evidence to support a reversal/pullback:
    Date Published Percent Bullish Percent Bearish
    08/29 48.9 24.5
    08/22 47.3 24.7
    08/15 43.6 26.6
    08/08 43.6 25.5
    08/01 39.4 27.7
    07/25 40.4 26.6
    07/18 43.6 24.5
    07/11 44.7 24.5
    07/04 42.5 24.5
    06/27 38.7 24.7
    06/20 37.2 25.6
    06/13 37.2 26.6
    06/06 34 26.6
    05/30 39.3 24.5
    05/23 38.3 26.6
    05/16 39.4 22.3
    05/09 38.7 20.4
    05/02 43 20.4
    04/25 41.9 23.7
    04/18 44.1 23.7

    BULLISHNESS HAS RISEN FROM THE JUNE 6th LOWS.... Contrarian
    29 Aug 2012, 12:43 PM Reply Like
  • Joe,

    The link I provided above provides a graph of the Investor's Intelligence Survey you provided. I also pay attention to this one as well.

    Still not at an overly extreme level - get bears under 20 and bulls over 50 and that's a pretty good sell signal.
    29 Aug 2012, 01:16 PM Reply Like
  • Cheers!!!
    29 Aug 2012, 02:45 PM Reply Like
Other date
DJIA (DIA) S&P 500 (SPY)