I watch the equity put to call ratio with some care. As you may remember, I was skeptical of the pump last week because the correction didn’t seem done on account of the Equity PCR not hitting the spikey high we often see at capitulation lows. That post can be found here. And sure enough, here we are, that pump got faded.
However: we got the spikey high today. The ratio almost hit 1, which is fuel for the upside now. The last time we got to these lows on 9/20, we only got an .85 on the ratio. So now—finally—people are really buying puts here. And that means it’s probably actually time to buy calls instead.