Dull Selloff, But No Panic Yet
OK, here’s the good news: only 34 of
the S&P 500 stocks have come out under lowered earnings estimates. The bad
news is Wall Street doesn’t seem to care that 149 stocks beat street
estimates. Today, all traders here on the floor seem concerned about is that we
went from badly oversold to overbought in four sessions and that made them
nervous.
A look at our computerized tracking shows money flowing out of nearly every
Nasdaq issue, but despite the percentage loss the Nasdaq is showing, the
traffic leaving is hardly a stampede. In fact, the big Nasdaq losers are
seeing dollar-weighted money flows into calls not puts, so I suppose that’s
one positive we can hang our hats on.
Dollar Weighted Money Flow
On the Call Side
| Symbol
|
Call
Volume
|
Put
Volume
|
$W
Call Vol
|
$W
Put Vol
|
| SUNW
|
40,200
|
12,367
|
131,393
|
23,399
|
| SEBL
|
12,611
|
3,258
|
68,870
|
13,190
|
| MU
|
17,304
|
3,500
|
62,708
|
12,485
|
| INTC
|
58,093
|
21,700
|
210,984
|
55,011
|
| ORCL
|
45,312
|
19,000
|
121,992
|
37,455
|
We’ve also seen our IBM put
spread (from last week) starting to expand. Big Blue’s selloff has
increased demand for both at- and out-the-money puts, which is helping push up
the value of both the 110 — 100 and 115 — 105 put spreads.
(1010WallStreet.com
has licensed the use of Hamzei Analytics proprietary options analytics)