CBOE P/C Being Manipulated??
From a reader: www.urbansurvival.com
"I read with interest your weekend update about something big coming in mid June. I was particularly interested in Robert McHugh's warning about the massive Federal Reserve money pumping (article linked to safehaven.com). Indeed, it does seem the Fed is still in "panic mode" even as the rest of the world fixates on interest rate hikes, etc. Why would the Fed be pumping money like mad if they're planning to raise interest rates?? Something here is fishy.
Something else fishy has been happening in the options markets. I follow the Chicago Board of Options Exchange (CBOE) put/call ratio on a daily basis. The put/call is often a contrary indicator.. when everyone buys alot of calls, the market is likely near a top. When everyone loads up on puts, we're probably near a bottom.. BUT NOT ALWAYS.
I've seen something in the CBOE put/call ratio over the past month that I've never seen before in nearly 10 years of following the markets. The put/call ratio has closed at 1.0 or higher on 13 of the past 22 trading days, stretching back to late April. There are two things unusual about this: First of all, I can't recall the put/call ratio closing over 1.0 for more than 3 or 4 days in any 1 month, even after the market reopened after September 11, 2001!! Someone somewhere is buying a HECK of alot of bearish options contracts... and they have been loading up on them for the past month.. What's even MORE remarkable is that market really hasn't rallied much at all. Normally a spike in put buying like that would be indicative of overly bearish sentiment on the part of the PUBLIC.. A rally usually would follow. This time, it doesn't appear to be the PUBLIC loading but instead, someone else... But whom?? And why? "