Zeev's Turnips Patch-No Politics (ZEEV)

[gtober]

I don't see how this information cannot bring the validity of the indicator into question. The extremely high put/call ratio has flown in the face of common sense for some time now. We certainly have not had the type of sell-off normally associated with these high readings. The $VIX, $VXO, $VXN are near 52 week lows. What this is saying is that people are buying droves of puts in relation to calls, but they are not paying any premium for them. There is no sense to that. While this explanation is hardly conclusive, it is easily sufficient enough for me to view the indicator with an asterisk.