Tuesday May 12, 2020
A put is a bet stocks decline. A call is a bet stocks advance. A put call ratio reflects fear. The higher the ratio, the more puts exist relative to calls.
In late Feb the ratio as .5 as it is now. But the S &P was over 3250. Now the S & P is under 3,000. So there is less fear than when prices were substantially higher.
Tenet 4 social mood is unremembered unconscious and constantly fluctuating.
% OVer 150 Day MA
Here is another divergence. Only 28% of stocks are over their 150 day MA. PMO at bottom is turning down. But as noted above optimism is surging. \
VIX
VIX is another measure of fear. It has returned to early March levels. The stage is set for the end of Wave Two, What Me Worry, and the start of Wave Three down.
Transports
This is a rough head and shoulders pattern, PMO suggests the Transports are slowly falling .
We will update later today.
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