Zeev's Turnips Patch-No Politics (ZEEV)

[Bullwinkle]

~now, on the other hand, shaeffer does interpret this bearishly ...~

So do I... While it is supposedly understood that >1.0 is bullish (heavy PUT buying) and <0.5 is bearish (heavy CALL buying) I tend to view it a little differently, rightly or wrongly.

When we are in an uptrend and the P/C ratio gets over 1.0, I tend to get a little nervous because it signifies to me that the uptrend is near an end. Now if we were in a downtrend I would reverse my perspective. Same goes for when the P/C ratio is at the <0.5 level. Again, I do not claim for this to be the proper way of reading this indicator, but that's the way I interpret it and it seems to me that more than just the ratio itself needs to be taken into consideration.

Here is a little something from Schaeffer #msg-3258697