Replies to post #133 on Sector Investing

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Trading the Put/Call Ratio 2
Adam Hamilton
June 13, 2003

http://www.zealllc.com/2003/pcr2.htm

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Chart of the Day

Back in January 2002, we mentioned that many significant bottoms have occurred during the latter part of the mid-term election year. With the S&P 500 up 30% since the October 9, 2002 low, it appears that the election year cycle is holding true to form. As today's chart illustrates, the average gain off the mid-term election year correction low to the pre-election year high is 51%. It will be interesting to see if the current rally will have enough momentum to match that average 51% gain, as investors remain extremely optimistic. Stay tuned...



http://www.chartoftheday.com/20030618.htm

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Chart of the Day
According to today's chart, investment advisors are extremely optimistic. If you accept the theory that pessimists are potential buyers and optimists are potential sellers, then the current percent bull reading of 75.3% suggests that the Gulf War II rally may be running out of steam. It is interesting to note that currently, there are more bullish investment advisors relative to bearish advisors than at any period during the tech bubble of the late 1990s. Stay tuned...

Notes:
- Red arrows occur when percent bulls peaks above 65%.
- Green arrows occur when percent bulls bottoms below 35%.
- Green & white arrows occur when percent bulls bottoms below 55% (from 1996-present).
- Percent bulls equals the 4-week moving average of the number of bullish advisors divided by bullish plus bearish advisors.