There may be a stock market correction soon.
Stocks have had a long rally, and the put/call ratio (0.57) is below its critical value of 0.60. There are almost twice as many calls as there are puts. There is too much optimism and too little money on the sidelines for further investing. Here's the source: http://www.wallstreetcourier.com./index.htm
This correction could be brief because of the underlying growth of the economy.
2 comments:
In your post you mentioned "There are almost twice as many puts as there are calls"; is this an error? Should it be twice as many calls as puts? Because in order to have put/call ratio to be .58, call should be more than the put.
Absolutely right! Calls outnumber puts.
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