BigTrends

Despite the market selloff, the latest leg of which began last Friday, we haven't seen an appreciable rise in the CBOE and ISE Equity Put/Call Ratios.  We track these nightly along with other important indicators in BigTrends Trader's Edge (call 1-800-244-8736 for information on Trader's Edge).

The chart below has an overlay of the S&P 500 Index ETF (SPY) on the top, followed by the CBOE Equity Put/Call Ratio and the ISE Equity Put/Call Ratio with Bollinger Bands.  Normally, we would expect to see Put/Call readings over 1.00 during times of a clear market panic -- these often precede significant market bounces, as they mark periods of panicked Put buying by the public.  However, both of these readings are around midlevels, which indicates a fairly even amount of Call & Put buying.  This is a relative sign of complacency among traders, given the negative market price action and poor economic news coming from around the world on an almost daily basis recently.

Short-term bottom line is continue to be cautious of this market and look to profit on the down side from market bounces.

So we all returned home late Sunday night from the BigTrends SuperConference in Charlotte, NC.  It was a great weekend, we got to meet and interact with many of our long-time clients and meet many friendly, intelligent, new ones as well.  Saturday was an OptionsXpress event with Price Headley and a representative from the ISE, while Sunday was BigTrends only, with every analyst (including myself) presenting in-depth and having 1-1 time with anybody and everybody who wanted to chat.  Thanks to everybody who attended and all the BigTrends team who helped out!