Saturday, September 19, 2009

Market Sentiment

Market Sentiment : Sentiment trader
We help traders and investors improve their stock, bond and commodity market performance by focusing on an often-overlooked component of price movement.

Stop being controlled by your emotions and make them work for you instead of against you.

Thousands of independent traders, strategists and fund managers rely on our services to help flesh out their investment outlook. Here are just a few:

Finally there is a website where sentiment data is taken seriously and presented thoroughly and concisely. This is no doubt the most complete and accurate collection of sentiment data on the web."
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ProprietaryModels

A big part of sentimenTrader is four sentiment models that have taken years diligent research to form. They are by no means a timing panacea, but they each serve a useful purpose when put into the proper perspective.

We want to provide users with the information they need to be aware of the current state of market sentiment, in all time frames. Like fundamental and technical analysis, sentiment can be quantified, measured and tested.

That's what we have done to come up with our models
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AvailableIndicators

The subscriber's section of sentimenTrader.com currently updates over 90 sentiment-related indicators. For a list of available indicators, see below.

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CBOE EQUITY PUT/CALL RATIO
http://www.sentimentrader.com/subscriber/pc_equity_description.htm
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asr note: Kirk said this sentimenttrader newsletter based 'equity only put/call' ratio helped him on 9/24/09 peak value showed showing market TOPPED. so try to get the subscription for this or on chat with Kirk this guy (author of news letter ) mentioned it is free.
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We can see here that there were 241,263 puts traded on the CBOE on February 7th, and 344,830 calls. Therefore, the CBOE equity put/call ratio would be as follows:

Equity put/call ratio = equity put volume / equity call volume = 241,263 / 344,830 = .70

Phrased another way, there were 70 puts traded that day for every 100 calls.

Because the day-to-day movements in this ratio are so erratic, we follow them on a 10-day and 21-day moving average basis, which corresponds to the most recent two-week and one-month period (trading days).

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Forecasting Market Direction with Put/Call Ratios
- As this post points there is 'equity' and 'index' options two separate put/call ratios.

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