Monday, March 27, 2006


Last week's Contrary signals included a sharp rise in Public/NYSE Specialist shorting to over 5.5, a level which precipitated rallies in early January and mid February this year, peaking 2/24 at 5.97 (per IBD).
Odd lot shorting also rose majorly through the week of March 10 (around 15%). The ISE call/put ratio jumped sharply up to 175, the level at Jan. and Feb.s' month end decline, although I view breaching the 200 level more serious. The CBOE put/call is still rather high/Bullish, at 63.
The ratio-adjusted McClellan Oscillator is buzzing around the zero line, but the Summation is still in the downtrend I mentioned earlier (at 552), showing the tendency to stay in a falling mode when coming off its highs (as it did last Spring and Summer).
The Bullish per cent is just below 70, needing to drop below 50 for another sustained rally.
Finally, The Panic/Euphoria Index (a Master Indicator) broke up through the surface to -0.28, the least negative since the July top.This does not bode well for the markets.

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