Zeev's Turnips Patch-No Politics (ZEEV)

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Late to the party...

Donald Luskin - Happy Days Are (Almost) Here Again
Monday, January 24, 2005

Valuation and other market measures tell me that stocks are on the verge of a very nice rally....

....One of the things that Fred is looking at now, three weeks later, is a unique approach to put/call ratios. Technicians believe that when put option trading exceeds call option trading, it means investors are getting excessively bearish. Fred goes this one better: He looks separately at the put/call ratio for options on stock indexes and the put/call ratio for options on individual stocks. On the theory that index options are used more by professional investors and individual stock options are used more by amateurs, Fred looks for times when the individual stock put/call ratio exceeds that of the index option put/call ratio....

http://www.trendmacro.com/a/luskin/20050124luskinSMC.asp