5 Stock Market Indicators at Extremes

Last week's volatile price action sent a number of indicators soaring off the charts

Jan 19, 2016 at 3:06 PM
facebook X logo linkedin


Last week was a volatile one for the market, as January options expiration and a negative macro environment stoked big moves in stocks. The Dow alone tracked a 751-point range, including Friday's 537-point intraday plunge. In the wake of this extreme price action, Schaeffer's Quantitative Analyst Chris Prybal highlighted five oddities that popped up.

  1. The 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) equity-only buy-to-open put/call ratio spiked to 0.726, after elevated daily readings on Jan. 14 and 15. The last time the ratio was near this extreme was on Dec. 21, when it registered at 0.749.

  2. 150119extreme1

  3. Friday's Options Clearing Corporation (OCC) equity-only, all-exchange put/call volume ratio of 1.36 was the fourth highest on record, and the 10-day moving average is now 1.1. As a point of reference, the highest ratio to date was 1.44, and occurred on Aug. 21, 2015.

  4. 150119extreme2

  5. Per a liquidity list of 3,628 tickers, there were 1,505 tickers that made a new 52-week low last week -- the most in a given week since Aug. 25, 2015, when 1,532 new lows were achieved. The four-week moving average of new highs/new lows is now at 0.3, which is very close to extreme levels.

  6. 150119extreme3

  7. The iShares Russell 2000 ETF (IWM) saw roughly 1.79 million puts traded on Friday -- the most on record . Overall, Friday's trading was the eighth most active for market-wide put volume, and the busiest since Aug. 24, 2015.

  8. 150119extreme4

  9. The market saw 90/90 down days on both Wednesday, Jan. 13, and Friday, Jan. 15. The last time we saw multiple 90/90 down days in one week was Aug. 20-21, and before that, it was April 15 and 17, 2013. There were multiple occurrences in 2011. As we've noted before, a 90/90 down day could present a buying opportunity.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI