SLAR250

Option Ratios Urge Cautious Investing

Under normal volume conditions this is an excellent contrarian measure for future price action of the marketplace. By contrarian, yesterdays 206 reading indicated a large amount of opening call purchases, would send out an alarm for lower valuations- usually in the next 3 trading sessions. However, the ISE only had 1.6 million contracts hit the tape yesterday compared to its annual ADV of about 3.9 million. Light volume and a few large opening SPY trades skewed this number considerably discounting the value of the ISEE Sentiment reading yesterday.

Friday Outlook: Financials' Time to Shine?

Dave...what do you think of XAL? Have we hit the bottom with Oil prices appear to be at the top of the RSI range and MACD looking to crossover. DAL/NWA has not been a catalyst for improved price action and talks of more mergers on the horizon have not put a ray of sunshine on this group. I almost tested the waters on Weds but could not pull the trigger.