A very interesting development has occurred. ISEE spiked to 199 and CBOE equity put to call dropped to .50. This means that sentiment has become excessively bullish in a very short time (all the headlines). This could be option expiration week related, but if that is the case after three DOW new highs, then bulls could be in for a negative surprise. Stay tuned, we will watch the closing sentiment numbers. But this is quite a reversal from last week. So bulls get added herd momentum and support, but it also means they are waking on thin ice. I know there is lots of talk out there on option sentiment being too negative but that seems to be changing. We have not hit any extreme levels yet, so bulls should keep chopping higher. Just be aware of the dynamics. HPQ next week will have to help tech bulls, now that MSFT just warned to lower expectations. Aside from short covering and option expiration traps, that is all the catalyst left. Unless of course Bernanke suddenly lowers rates ahead of schedule. But with core still climbing, I doubt it.
If I see an ISEEE closing number above 200, I will start thinking aggressively short. For now, shorts are still swing trades only.
The only spiders up at this time of day are consumer staples, so regardless of option noise, the market is thinking major slowdown and heading for the safety of that group. link (this is a dynamic graph so it could change later, even with the same link).
If I see an ISEEE closing number above 200, I will start thinking aggressively short. For now, shorts are still swing trades only.
The only spiders up at this time of day are consumer staples, so regardless of option noise, the market is thinking major slowdown and heading for the safety of that group. link (this is a dynamic graph so it could change later, even with the same link).
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on Friday, February 16, 2007 at 2/16/2007 11:52:00 AM.
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2/16/07 12:47 PMAhh, the sectors. Nice link. Thanks.
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