OEX Put/Call Ratio Turns Bearish

Published 07/27/2016, 01:12 PM
Updated 07/09/2023, 06:31 AM
XAU/USD
-
US500
-
SPY
-
GC
-
GDX
-
  • Monitoring purposes SPX: Short SPX on 7/26/16 at 2169.18.
  • Monitoring purposes Gold: Sold GDX on 6/10/16 at 25.96 = gain 14.97%. Long GDX on 5/31/16 at 22.58.
  • Long-Term Trend monitor purposes: Short SPX on 1/13/16 at 1890.28
  • OEX Put/Call Ratio

    The bottom window is the 10-day average of the OEX put/call ratio. Readings above 1.90 have been a bearish sign for the market and today’s reading came in at 2.02. FOMC meeting announcement is Wednesday and could have a short term affect on the market, however it appears when the dust settles, a pull back is likely. There are open gaps below on the SPY (NYSE:SPY) and open gap usually get filled at some point. The first downside open gap is near the 210 range and a possible target to the downside. Most bottom signals are triggered by panic in the TRIN and Ticks and where ever panic occurs will be the time to exit the short position. Listen to me tomorrow at 9:00 a.m. EST on http://premarket.benzinga.com/pre-market-show/. Short SPX on 7/26/16 at 2169.18.

    Put Volume/Call Volume Ratio

    FOMC meeting starts today and ends tomorrow and may have an affect on the market which could turn into a top. The middle window is the ”10-day average of the Put Volume/Call Volume ratio” and readings below .90 have been a bearish condition for the market. Today’s reading came in at .85 suggesting a top is near. There could be short term volatility on the announcement tomorrow, but the outcome should produce a pull back.

    Gold Miners

    The above chart is the weekly GDX. Couple of weeks ago, GDX ran into the high of August 2013 near 30 range and backed away suggests that area has resistance. Yesterday GDX fell back near support at 27 and found support and today rallied some. Another bounce is possible to test or break to a new minor high completing an Elliott wave five count up from the January low. After the next potential rise to complete Wave 5 a bigger correction could start that may last into the “Eight year cycle low” due around September, October timeframe. Its common after the an Elliott Wave 5 completion, that the next pull back finds support near the previous Wave 4 low which in this case is near 22 on GDX. Don’t see a safe trade here for GDX but a lode of gold stocks are on monthly buy signals. Sold GDX on 6/10/16 at 25.96 = Gain 14.97%.

    Signals are provided as general information only and are not investment recommendations. You are responsible for your own investment decisions. Past performance does not guarantee future performance. Opinions are based on historical research and data believed reliable, there is no guarantee results will be profitable. Not responsible for errors or omissions. I may invest in the vehicles mentioned above. Copyright 1996-2016.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.