Don’t Fight The Trend, But Note The Flow Into Nasdaq
Like the rest of you, I’m seeing
pretty serious rotations away from Dow stocks and into the Nasdaq sector.
Primary beneficiaries include: Siebel
(
SEBL |
Quote |
Chart |
News |
PowerRating), Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating) and a
number of semiconductor or memory makers, such as Micron
(
MU |
Quote |
Chart |
News |
PowerRating) and Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating).
However, when I looked at our Dollar-Weighted Put/Call ratios, two stocks
stood out. By normal measurements, Motorola’s
(
MOT |
Quote |
Chart |
News |
PowerRating) 9:1 call-to-put ratio, would seem to be a bullish indicator, but
our ratio, which takes into account the value of the puts and calls being
bought and sold, shows a less bullish 1.8 to 1 ratio.
The antithesis of that is the reading in MU, which broke to five-week highs
this morning. The regular put/call shows the puts (bears) in the drivers
seat, but look at our dollar-weighted readings, which show the bulls in
charge. Both stocks are great examples of why the regular put/call is
simply a flawed indicator of market sentiment.
A Tale of Two Techs:
|
Symbol |
Call
Volume |
Put
Volume |
$W
Call Vol |
$W
Put Vol |
| MOT | 12,462 | 1,471 | 13,573 | 7,529 |
| MU | 12,320 | 15,597 | 56,179 | 37,532 |
The dollar-weighted put/call ratio
in the OSX continues to call for falling prices in the oil service sector.
At 7:1, dollar-weighted put action shows the big boys continue to play for a
slide in crude prices.
The Oil
Service Basket:
|
Symbol |
Call
Volume |
Put
Volume |
$W
Call Vol |
$W
Put Vol |
| OSX | 5,689 | 19,324 | 23,893 | 174,397 |
For an expanded discussion of today’s
market activity, be sure to check out Doctor J & the Traders, on www.webfn.com
every Thursday at 6:00 PM ET. My guests include www.TradingMarkets.com
commentators Lewis Borsellino and Goran Yordanoff. Doctor J & the
Traders cycles throughout the weekend on WebFN.
(1010WallStreet.com
has licensed the use of Hamzei Analytics proprietary options analytics)