THE DOT - if this turns orange or red be alert

Thursday, April 15, 2010

part 3

5. Extremes never seen before in the options market today so far as heavy buying into Citibank calls drives the markets to insane odds. With an ISEE above 300 but should come down a bit over the day.

All Securities
TimeCallsPutsTotalISEE
10:50421815131761553576320
10:30362761103351466112351
10:1029270575692368397387
09:5022559642499268095531
All Equities Only
CallsPutsTotalISEE
31705866744383802475
26784945582313431588
20357136841240412553
14249219749162241722
All Indices & ETFs Only
CallsPutsTotalISEE
10475365005169758161
9490857766152674164
8913038848127978229
8310122748105849365

6. More extremes

Nasdaq Cumulative TICK Of 5,300 At Highest Since 2002, Relative Put/Call Ratio At Most Extreme Ever: The Bubble Is Now Fully Back


The latest confirmation of the stock market bubble comes from Sentiment Trader which points out that yesterday's Nasdaq TICK almost passed an all time high, yet settled down...to 8 year high levels. As ST points out: "There were only three other dates that even come close to the current extreme: October 4, 2001: The NDX was coming off a major low, but still backed off for 3 days before rising again. May 2, 2002: The NDX dropped hard for the next 3 days. May 15, 2002: The NDX managed to rise a bit for the next 2 days, then rolled over into a major decline. Since then, the TICK hasn't managed to get above +4000 at any point, even intraday, much less to the +5300 level it closed at yesterday. Truly remarkable." Ben Bernanke has now succeeded at convincing virtually everyone that moral hazard is the right approach to dealing with an insolvent financial system.

And for another indication of just how overbought the market is, Sentiment Trader also points out that the equity-only Put/Call ratio dropped to 0.32, the lowest reading since January 16, 2004, which on a relative basis is 45% below six-month average. The conclusion: " That, my friends, has never happened before (at least going back to 1997)."

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