May the Force Be With You

Today’s list of dollar-weighted volume showcases a number of interesting
forces at work in the market. First, the action in the OEX
Quote |
Chart |
News |
decidedly bearish, despite the compression of volatility (our VIX reading for
the OEX and other key indexes follows the second graphic). We’re looking at a
regular put/call ratio of .70 and a $-weighted average of 2.4-to-1. In plain
English, the trading in the OEX pit is still heavily put (bearish) weighted,
reflecting a disbelief of the rally we’re presently experiencing.

The Semiconductor Index $-weighted put/call is a very high 11.74-to-1, despite
the 34-point rally going on over there. I contrast that to the very bullish move
going on in the Nasdaq index complex, which includes the MNX, NDX and

As the above graphic shows, the action in the
MNX is distinctly bullish, with over 14 calls trading on a
dollar-weighted basis, to every put. The
action in the QQQ is much more muted, as the absolute ratio favors the
calls (52,000 to 27,000), while the dollar-weighted shows much more equal

The bearish action list is included below and as you can imagine the list is