Our key to success is identifying what the herd expects to do next and lie in wait for that inevitable migration to begin. Ambush using calls or puts as conditions dictate result in our share of prime beef or bear steak as a reward. Market Sentiment thinks we hear faint hoof beats of the herd approaching now and looks to bullish strategies for the next barbeque bear. Wait patiently for the next successful test of near-term support and consider firing up your grill as well. Ratio listed is percentage of calls to puts or puts to calls respectively.
Support is factored from dividing puts by calls at strike levels beneath index closing price.
Resistance is factored from dividing calls by puts at strike levels above current closing price. Small specs are the general trading public with commercials being financial institutions. Commercials are historically on the correct side of future trend changes while small specs are not. Extreme divergence between each signals a possible market turn in favor of the commercial trader's direction. The DJIA had both sides moving in synch as they lightened their net-short holdings.