Put/Call Ratio at Low Level

By on April 6, 2010

VIX and More blog points out the low level of the CBOE Equity Put to Call ratio based on its 21 day moving average.

readings below 0.60 have generally been a good time to take profits on long positions and/or initiate short positions. In fact, the current 0.53 level has only been seen on one prior instance, in January 2004. That period just happened to be exactly 13 months after the S&P 500 index had bottomed and started a strong bull rally. It also marked the beginning of a period in which stocks declined for ten months, before resuming a rally that would ultimately last until October 2007.

Source: VIX and More

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