Replies to post #2047 on The New CS Board

[Smokey22]

Could be either one. If the Smart Money is holding those puts, we get a crash. If the Dumb Money is holding them, we get a short squeeze.

Put/call ratio theories that are contrarian in nature always assume that the Dumb Money only BUYS options and the Smart Money only SELLS them. Au contraire, mon frere. Look how often Max Pain theory effs up. Max Pain theory is another contrarian options theory of the above type. On options expiration tomorrow, Max Pain theory traders on the indexes will be losing their shirts, shoes, pants, and underwear, as they often do.

[dww10063]

Hi Rivers, glad I caught this. Mssages don't end up in my email like on clearstation, and I don't scan the board very often. CPCE above the 0.92 bar is usually good for some sort of bounce. It's not impossible for the market to mount a tradable rally from here, but IT breadth and 10dNH% and BPI are not in usual IT bottom range. Compare to June of last year when a bounce at similar breadth/sentiment/volatility technicals was short lived before a lower low. So unless a really significant rally happens from here, I'm still looking for Nasdq 2550-2700 as likely bottom range unless we are in a bear market. Best, Don