If You Think EMC Looks Bad, Take A Look At CIENÂ
One
of our star commentators on the show “Doctor J & the Traders,” (on Webfn.com,
keyword “Traders”) Goran Yordanoff, discussed how unlikely it is
that we would see any sustainable rally until more damage has been done to
investor sentiment. How right Goran was, as his prophetic statement has
certainly been true for the opening of this, the third quarter of 2001.
Investors that were lured back in due to the false rally at the close of the
second quarter are wishing they had those hard-earned dollars back, as the total
collapse of the tech sector (Brocade Communications
(
BRCD |
Quote |
Chart |
News |
PowerRating), QLogic Corp
(
QLGC |
Quote |
Chart |
News |
PowerRating) and Novellus
Systems
(
NVLS |
Quote |
Chart |
News |
PowerRating), to name a few) has punished anyone bold enough
to wade into what they thought were calm waters.
Earnings warnings and investor sentiment have proved to be a deadly (at least
for the bulls) one-two punch. Neither the Nasdaq nor the Dow seems likely to see
any of the rebound action that has saved other selloffs in the recent
past.
We’ve highlighted the action in Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating),
as the dollar-weighted put volumes indicate a complete lack of fear on the part
of the bears. Note that the standard put/call ratio for CIEN is a mere 3:1,
but our dollar-weighted indicators show a surge of put buyers absolutely
swamping the call speculators.
| Symbol
|
Call
Volume
|
Put
Volume
|
$W
Call Vol
|
$W
Put Vol
|
| EMC
|
48,658
|
47,617
|
115,516
|
253,492
|
| OSX
|
998
|
21,060
|
2,544
|
180,404
|
| CIEN
|
6,100
|
18,673
|
11,230
|
152,696
|
| DJX
|
8,625
|
32,040
|
8,636
|
111,337
|
(1010WallStreet.com has licensed
the use of Hamzei Analytics proprietary options analytics)
EMC
is also seeing heavy trade due to its earnings warning, but the differential
between standard ratio and $ Weighted ratios aren’t telling the same story as
CIEN.