Saturday, September 12, 2009

Put/Call Ratio Shows Stocks May Extend Rise: Technical Analysis

(Bloomberg) -- Bearish options bets on U.S. stocks remain near the highest level since March, a signal that the steepest rally since the 1930s may continue, according to Brown Brothers Harriman & Co. The ratio of puts to calls on U.S. indexes and equity options averaged 0.89 in the five days through Sept. 8, little changed from the 0.91 average in the five days through March 9, when the Standard & Poor’s 500 Index sank to a 12-year low. That shows investors remain pessimistic, Brown Brothers Harriman said, a positive signal to some technical analysts who track investor sentiment as a contrarian indicator.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aynoYI.vIgMY

No comments:

Post a Comment