While I am not one to really look at sentiment or put call ratios bc for my style they are useless.
Unless they are at extremes. Then I pay a little attention to them. What concerns me is not the
ratio but the moving quarterly average level of the ratio.
When Gov't back stops all risk to investors while running around and saying there is not bubble
keep going!...
Based on the US equity options Put/Call, most traders are on the wrong side of the boat heading into tomorrow's (quad-witch) opex. Hold on to your hats, folks!
Massive day for the Put/Call showing a notable shift in sentiment off this morning's ugly inflation print. Jobless claims tomorrow morning should be a doozy!
What is the put/call ratio?
The put/call ratio (PCE) is a popular barometer of market sentiment, which shows the ratio of trading volumes of Put vs Call options. However, with distortions in the current price of nearly every instrument off the back of "free money," and persistent market intervention by policy makers, we're not quite seeing the price discovery...
The put to call ratio is simply the ratio of short options over long options in the S&P 500. What sticks out to me is that the ratio saw its second highest level in December of 2018. While a bottom of .3 percent would likely signal irrational exuberance as had been suffered in 2007, it seems since 2012 a bottom target is .6 percent. While the market melts up under...
![PCE: [PCE] Just Sayin...](https://s3.tradingview.com/q/Q7O9OSHi_mid.png "[PCE] Just Sayin...")
![PCE: [PCE] Upgraded!](https://s3.tradingview.com/s/sWg8tSFe_mid.png "[PCE] Upgraded!")
![PCE: [PCE] Where Will the Breaking Point Be... Over/Under Dec. 18th?](https://s3.tradingview.com/c/c6mITiLG_mid.png "[PCE] Where Will the Breaking Point Be... Over/Under Dec. 18th?")
