Thursday, July 22, 2010

Getting Ready For a Plunge

The 5-day moving average equity put/call ratio is only 0.60, which is approximately one standard deviation below the mean for the past three years. This is a level associated with market corrections and not rallies.



The level of complacency should be alarming for the bulls.

The consensus seems to be we have some sort of minor, "double-dip" recession, no big deal. As if.

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