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Monday, March 16, 2009

Sentiment has been very bullish during this rally

Since the markets made a temporary (temporary? how do I know, well it has to be tested once beofre it is a permanent one ) bottom and bounced back the put/call ratio has been very low. In fact the index p/c ratiod has been below 1.00 for 6 days in a row.
This really calls for at least a day or two of selling. The equity p/c also has been quite low.
I will try and check when this happened last time , 6 days below one in a row , and what happened next.
This week is options expiration week, so expect more drama, up or down.
I am not going to reject the rally or the bear market, just looking for opportunities to make money.

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