/biz/ - Business & Finance

>>21403242
>>21406374
>>21406501
I posted this a few weeks ago but I'll share it again. This is the Put/Call Ratio charted with the CBOE SKEW index. Seems to be a good contrarian indicator. When the SKEW is high and the Put/Call is low it usually indicates an incoming correction. Basically when the lines move apart it's either a buy or sell signal. We've been getting a sell signal for a while but this indicator is not great for accurate timing. Look what happened during March in pic related. The SKEW went to rock bottom and the P/Call went way up indicating a fantastic buying opportunity. Right now the SKEW has remained elevated with rock bottom P/Call ratio. Usually the correction occurs once the lines converge but again it's not great for super accurate timing more of a general market sentiment indicator.