Put/ Call ratio saying a move down is right around the corner !
- There is a zone for the put/ call ratio of 0.74-0.8.
- Historically, this is a zone from which corrections in the market have initiated. (blue arrows)
- There are instances where complacency gets extreme and the ratio drops to new lows but significant corrections have followed in the near future (red arrows)
- Currently, you can see the ratio has been in the zone for almost 3 weeks and a correction seems to have begun in the broader market but not yet SPY & QQQ
- Typically, once the ratio gets in the zone, IF a correction has to take place it happens within 1-2 weeks so if something has to happen my timeframe is the end of this week or the trade loses its strength
- I have a cycle analysis as well as a vix analysis (see related ideas) which makes this week significant
- Historically, this is a zone from which corrections in the market have initiated. (blue arrows)
- There are instances where complacency gets extreme and the ratio drops to new lows but significant corrections have followed in the near future (red arrows)
- Currently, you can see the ratio has been in the zone for almost 3 weeks and a correction seems to have begun in the broader market but not yet SPY & QQQ
- Typically, once the ratio gets in the zone, IF a correction has to take place it happens within 1-2 weeks so if something has to happen my timeframe is the end of this week or the trade loses its strength
- I have a cycle analysis as well as a vix analysis (see related ideas) which makes this week significant
Ghi chú
The chart above is a smoothed put/call ratio with a 10d SMA to reduce the noise of daily movements
Bài đăng liên quan
Thông báo miễn trừ trách nhiệm
Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.
Bài đăng liên quan
Thông báo miễn trừ trách nhiệm
Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.