Tuesday, July 29, 2008

Rally Ahead?

As of Friday, the CBOE Put/Call Ratio had fallen below 0.85, which could be a sign of a bullish week to come for U.S. indices. What's more, with the WTO in global trade policy talks this week, we could also see some follow through in equity markets, via the strengthening of the U.S. Dollar. The last WTO meeting of this magnitude was in 2001, coincidentally just about when the greenback began tumbling south. Given the market's recent selloff (and the potential reversal looming in the U.S. Dollar) equity enthusiasts may want to keep a close eye on the put/call ratio on Monday and Tuesday.


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