An Increasing Bearish Bets on the Cheap Sighting ~ The Risk Averse Alert

Wednesday, November 24, 2010

An Increasing Bearish Bets on the Cheap Sighting

Oddly enough today's strong advance was accompanied by what appeared an elevated measure of long equity position hedging via put options...


Or was elevated put option volume reflecting a bias intending to establish short equity positions over the upcoming period, much like occurred late-April?

OEX 5-min

Lower OEX highs over the past two weeks are coinciding with higher relative strength peaks. So, price weakness persisting despite increasingly stronger lifts off a momentary bottom reasonably is seen typical behavior of a corrective wave forming in the midst of a larger decline whose gravity Mr. Market is increasingly challenged to defy — a decline developing since earlier this month, and nearing a point where its continuation lower can no longer be delayed.

Thus, today's unusual pickup in put option interest.

Fast Money
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