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Total Put-Call Ratio Buy Signal

On Friday, May 6th, the total put-call ratio (ALL options traded) was above 1.00.  That is quite unusual, and when it occurs during a declining market phase, it is normally a strong buy signal.  The last time this happened was March 15th and 16th.  The market then rallied from 1256 to 1335 over the next month.  There are nuances to this, of course, which will be discussed in our newsletters, but this is usually a sign that "too many" people have become bearish and -- by contrarian analysis -- the market should be bought.

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