fbpx Put Call Ratio | Option Strategist
Home » Blog Tags » Category » Put Call Ratio

Weekly Stock Market Commentary 2/14/14

By Lawrence G. McMillan

A lot has happened in the past three weeks, but $SPX is literally unchanged from where it was at that time.  A nearly 100-point round trip has taken place -- down, then up.

A move above 1850, to new highs, would be very bullish for $SPX.  Although if it happens right away, it will be without support from many of our indicators.  Meanwhile, there is minor support at 1800, and major support at 1740 (the February lows).

Equity-only put-call ratios continue to remain on sell signals.

Weekly Stock Market Commentary 2/7/14

By Lawrence G. McMillan

The stock market finally halted its straight-down tailspin.  A strong rally generated some oversold buy signals which could carry the market back towards its declining 20-day moving average.

The $SPX chart is negative, in a pattern of lower highs and lower lows, and that is what makes it bearish.

Equity-only put-call ratios remains negative.  Thursday's rally did not impede their march upward, and when put-call ratios are rising, that is bearish for stocks.

Weekly Stock Market Commentary 1/31/14

By Lawrence G. McMillan

Are you having fun yet?  Volatility has returned, and the market is a daily dose of pain and pleasure, to either the bulls or the bears.  There are plenty of cross-currents now, and in reality, volatility hasn't even increased all that much (statistically).

Weekly Stock Market Commentary 1/17/14

By Lawrence G. McMillan

If there is a theme to this market, it's this: it's overbought, but continuing to rise.  There is strong support for $SPX at 1810. Moreover, there is now resistance near 1850.

Now for the litany of bullish, but overbought indicators:  Equity- only put-call ratios are typical of this group.  Both ratios are declining, and that is bullish.  In addition, both ratios are at the lowest levels on their chart and that means they're overbought.

Weekly Stock Market Commentary 1/10/14

By Lawrence G. McMillan

Stocks have been fairly dull so far in 2014, but some movement is probably setting up soon. Not much has changed with respect to the indicators that we follow, but let's review them anyway.

The Standard & Poors 500 index ($SPX) has pulled back modestly. As long as the support at 1810 remains intact, the trend is bullish for $SPX.

Equity-only put-call ratios continue to remain near the lower regions of their charts (Figures 2 and 3). This means they are in an overbought state.

Weekly Stock Market Commentary 1/3/14

By Lawrence G. McMillan

The new year started with a thud, as selling pressure that had been building up over the past few days was released.   Even after the selling, the $SPX chart is bullish, as long as it remains above 1810.

Equity-only put-call ratios have rolled over to sell signals, from very low (overbought) levels on their charts.

Market breadth had been quite strong -- until January 2nd.  Breadth was so negative today that the breadth indicators are just barely clinging to buy signals at this time.

Weekly Stock Market Commentary 12/27/13

By Lawrence G. McMillan

The rally that began last week with the Fed announcing tapering has broken out strongly to new highs. The fact that this occurred during a seasonally bullish period has certainly helped, too. $SPX will remain bullish as long as it holds above support at 1810.

Equity-only put-call ratios are shown Figure 2 & 3. Both are at new lows now, and as such they are both on buy signals (because they are declining) and they are overbought (because they are so low on their charts).

Weekly Stock Market Commentary 12/20/13

By Lawrence G. McMillan

Even with the volatiilty following the FOMC meeting, SPX still has not broken out of the 1775-1812 range on a closing basis.  If it DOES break out to the upside, the positive year-end seasonality should help.

The equity-only put-call ratios moved to sell signals about a week ago, but those signals are now wavering.

Market breadth gave buy signals earlier this week, but now those two breadth indicators are mixed: one on a buy; the other on a sell.

Weekly Stock Market Commentary 12/13/13

By Lawrence G. McMillan

The market -- as measured by the S&P 500 Index ($SPX) -- has declined on eight of the last ten days, and that has taken a toll on the technical indicators. However, $SPX is sitting right on support at or just below 1780 (see Figure 1). Hence, shorting the market now could be a mistake.

Weekly Stock Market Commentary 11/29/13

By Lawrence G. McMillan

Price action -- via the $SPX chart -- and volatility have remained bullish. We have often said that price is the main indicator and that has certainly been the case this time.

Equity-only put-call ratios turned bearish a little more than a week ago and remain on sell signals.

Market breadth has generally been weaker than the market until very recently, but now the breadth indicators are rolling back over to buy signals.

Pages