Weighted equity-only put-call ratio sell signal

By Lawrence G. McMillan

The weighted equity-only put-call ratio curled upward yesterday from extremely low levels, and the computer analysis programs rate this as a sell signal. The standard ratio did not curl upward, but it is also nearing a sell signal according to the analysis programs. One strong day of put buying will likely generate a sell signal here as well. The long-term track record of these equity-only put-call ratios is very good. However, before one gets too excited about these impending sell signals, remember that these ratios gave sell signals right at the beginning of 2024, and those did not work well (unless you were trading IWM). So, we will act accordingly, without getting too excited if they are both on confirmed sell signals...

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