Froddy
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The 10 period simple moving average of the NYSE put:call ratio hit a fresh high today, meaning that the crowd is very short here, and shorter than they have been for a couple of years now.
Historically, when the crowd is too short (or indeed too long) the stock market, they find themselves at the receiving end of market structure shifts which move against them (see chart below comparing P:C ratio to S&P). There is gorgeous liquidity above for Big Money to devour. The million dollar question is simply: notwithstanding the probabilities, is it different “this time”? Answers on a postcard! …
Historically, when the crowd is too short (or indeed too long) the stock market, they find themselves at the receiving end of market structure shifts which move against them (see chart below comparing P:C ratio to S&P). There is gorgeous liquidity above for Big Money to devour. The million dollar question is simply: notwithstanding the probabilities, is it different “this time”? Answers on a postcard! …