Using the Intraday Equity Put/Call Ratio to Gauge Sentiment

ppteam

The stock market opened sharply lower this morning and broke below important support in early trade. Although this looked quite bearish, the mixed sector performance and firmness among other asset classes suggested that we might be in more of a range environment. A number of traders apparently did not make this shift; by the end of the day, I heard from more than a few frustrated bears.

The intraday CBOE equity put/call ratio (above) helps us understand what was going on. Average put/call levels since the start of 2010 have been around .63. Notice how bearish sentiment grew through the morning, even as stocks were basing. Once the market broke out of its morning range on solid buying interest (NYSE TICK) and volume, put/call levels never dipped below average and indeed stayed elevated during the afternoon. This bearishness helped buoy the market through the afternoon trade.

Once we broke obvious support, it was obviously time to be short. Unfortunately, markets rarely reward what is readily apparent. A look below the surface at the put/call sentiment showed that the short side was crowded--and that set up a significant reversal.

yaobooyao

This is really good.

Any source can provide the realtime P/C ratio?

Thanks 泡泡糖。 （我用紫光拼音打ppt， 也是泡泡糖）

registered

thanks.

ppteam

2# yaobooyao

realtime, I guess you can find intraday data from CBOE or ISE site. They update I guess every 30mins.

alittlebit

http://2.bp.blogspot.com/_7VHLCUlm_9o/S4b6Whaja4I/AAAAAAAAEU4/zWI1V3ebl0M/s1600/PutCall022510.gif

The stock market opened sharply lower this morning and broke below important support in early trade ...
ppteam 发表于 2010-2-25 20:32

我用谷歌拼音是“泡泡堂”

yaobooyao

2# yaobooyao

realtime, I guess you can find intraday data from CBOE or ISE site. They update I guess every 30mins.
ppteam 发表于 2010-2-25 21:32

That's too late to me. But anyway this is a good one for ST.

ppteam

I used to check this intraday; not anymore, the price action actually is more clear.

busywind

thanks

hillcrest

This is really good.

Any source can provide the realtime P/C ratio?

Thanks 泡泡糖。 （我用紫光拼音打ppt， 也是泡泡糖）
yaobooyao 发表于 2010-2-25 21:16

updated every half hour
http://www.cboe.com/Data/IntraDayVol.aspx

90ufo

I used to check this intraday; not anymore, the price action actually is more clear.
ppteam 发表于 2010-2-25 21:37

我也觉得看CPCE不一定有帮助.
这句更有用些"the mixed sector performance and firmness among other asset classes ... range market..."