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February 2, 2006

Triple-Digit Dow loss, Thurs., Feb. 2, 2006, 4:04 PM

A sell-off attributed to fears of inflation, fears of a heightened terror alert, fears of corporate earnings declines, fears... In a broad sell-off there are always fears. As for me, I'm always afraid.

After every triple-digit Dow loss or gain, it pays to take a hard-copy record of the winners-losers for the day. Then use that data to study sector rotation.


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Posted by Posted by Bill Cara on February 2, 2006 04:05:04 PM | Category: Cara Today in the Market

Discourse

Everybody's afraid. Check out the put-call. Funny, near market highs (for this rally), that there'd be so much pessimism and gloom. Must've been that State of the Union speech.

Posted by: muckdog [TypeKey Profile Page] at February 2, 2006 7:23 PM [link]

In the market lows of Sept/Oct, the major moving averages of put/call were around 1, and the spikes were well over 1. Today the major moving averages converge around 0.82 - near the 52wk lows. The thing can spike around on a day-day basis, but the longer term smoothed $CPC is as bullish as it has been since Dec04 and Dec03. You can plot it on stockcharts using $cpc and the 50dMA. 0.02.

Posted by: ClaudeG [TypeKey Profile Page] at February 2, 2006 9:43 PM [link]