Friday, February 11, 2011

The Spike

The put/call ratio has made a bullish spike yesterday indicating the market is finally ready to head down:

In the past I have seen the market top without such a spike but it gives important confirmation to my short bias whenever present.

I think a bigger rally is a sell today. I also expect significant weakness to be followed through.

2 comments:

Anonymous said...

Adi, thanks for the update. I am still worry about POMO issue...that really could bring the market down at this point? Any dip was bought by someone here.

Tony

Adrn said...

Tony,

I think the market can fall even with POMO. Dips are bought several times at the top before the market breaks.