Jan. 3rd mid morning comments on the stock market

As the Put to Call ratio had indicated last Friday, 12/31/10, the ratio came in at 1.37 and was a Buy signal. This morning the market surged up 125 points by 8:00am PST and the Put to Call ratio has now backed off to 0.59, which is almost a Sell signal. Look for the Put to Call ratio to be as low as 0.54 or lower to signal a Sell. This looks like very high volatility coming over the next few weeks.

Update: 9:00am PST
Here is the data on Put to Call this morning 1/2 hour at a time. I will update it for the whole day as the data comes in.

7:00am PST 0.73
7:30am PST 0.68
8:00am PST 0.59
8:30am PST 0.61
9:00am PST 0.60
9:30am PST 0.61
10:00am PST 0.59
10:30am PST 0.60
11:00am PST 0.64
11:30am PST 0.65
12:00pm PST 0.62
12:30pm PST 0.63
1:00pm PST 0.64