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Following up on John's earlier comments about the market looking tired, a
trader might be deceived by Friday's performance. However, if the trader
looks at a sentiment indicator based on option volume and open interest he
sees a different picture. Attached is a chart of the OEX plotted above a
modified Hines Ratio. The Hines Ratio is described in the TASC April 1989 on
page 50. It measures Bull sentiment and bear sentiment by making a ratio of
ratios. Hines Ratio = (CallVol/CallOI)/(PutVol/PutOI).
Happy trading,
BobR
http://www.oextrader.com
Attachment Converted: "c:\eudora\attach\SENTIMNT.gif"
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