Still No Crowd Belief in This Rally

Although the market is a little overbought in here on a very short term basis, it is great to see the equity option players buying puts.

It is a very bullish Intermediate Term signal when we see the market up 150+ points and the CBOE Put/Call ratio closing the day at 1.12.

Today the market also confirmed its most recent panic low as an intermediate term bottom. While I certainly do not rule out a pullback of some sort, we are almost guaranteed that the chorus that was singing 1987 all over again will be wrong.

Actually there are more differences than similarities when you compare the here and now to 1987. If you are looking for a true comparison you might want to look at the 1995-1996 area.

Tomorrow I want to talk about the long term bullish trend in both the daily and weekly CBOE Put/Call Ratios.

Good Luck on All Your Trading!!