This Indicator has been a Staple for Me!

I look at a lot of ratios, ratios of asset classes, ratios of style and ratios of market cap and so forth. It does not stop there every day of my life.

What I get from this is where the money is moving on an intermediate term time frame.

So what do I mean by ratios? I divide one thing by the other and plot on a chart. If x is outperforming y, I want to be overweight X.

One Ratio that has been great for me (not perfect) is the ratio of stocks (equal weight) to the put to call ratio (a sentiment indicator). Right now this indicator remains bullish.

Here is the chart:

Ratio 8 9

And I’ll check with my west coast analyst, Erin to see what she thinks!

Erin

Thanks for your time!

Captain John

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2 thoughts on “This Indicator has been a Staple for Me!

  1. Johnnie – do you think Fed tightening is priced in? Hard to believe it wouldn’t have more effect. The old excuse that the US is the only game in town has run its course with some of the other markets recovering so I don’t know…(:

    Sent from my iPad

    • Hi Earle,

      Sorry for not getting back been waiting for my developers to get the New Blog finished and have until recently only been posting on StockTwits and Twitter. Just noticed your comment.

      That indicator did briefly dip into the sell zone but not by much and other things have remained bullish despite the move in interest rates, Washington and so on.

      I’m not certainly a perma bull but you have to admit this market has shrugged off quite a bit this year and I don’t see enough evidence at least technically yet to get too defensive.

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