Browse Symbol Stacks: $SPX: 20160723_SmartToDumbRatio.png

20160723_SmartToDumbRatio.png

Smart money to dumb money ratio is about to generate short term bearish signal

Comments

Strangelove; @TauschhandelStrangelove; @Tauschhandel
Please explain I am dumb...is any extreme caused by dumb money? 
 
http://www.wallstreetcourier.com/v/ci-equity-options-call-put- ratio.htm 7/23/16
DimonDimon
!10PCROEX (OEX put/call ratio) represents "smart" money, !10PCREQU (equity put/call ratio) represents "dumb" money. These ratios generate bearish signal in case !10PCROEX get extreme highs ("smart" money is bearish) and !10PCREQU get extreme lows ("dumb" money is bullish). These ratios generate bullish signal in case !10PCROEX get extreme lows ("smart" money is bullish) and !10PCREQU get extreme highs ("dumb" money is bearish). 7/23/16
EmptyeternityEmptyeternity
What's the appropriate item to trade for this indicator? Calls, Puts (buying or selling) for a various index or ETF? 
Appreciate any insight! 7/24/16
DimonDimon
In case of bearish signal one can buy puts on SPY (etf) or buy inverse s&p500 etf. But keep in mind s&p 500 and this indicator can go higher before pullback begin. 7/24/16