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 Time Calls Puts Total ISEE 10:50 421815 131761 553576 320 10:30 362761 103351 466112 351 10:10 292705 75692 368397 387 09:50 225596 42499 268095 531

All Equities Only Calls Puts Total ISEE 317058 66744 383802 475 267849 45582 313431 588 203571 36841 240412 553 142492 19749 162241 722

All Indices & ETFs Only Calls Puts Total ISEE 104753 65005 169758 161 94908 57766 152674 164 89130 38848 127978 229 83101 22748 105849 365

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)."