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Post by Emperor AAdmin on Nov 18, 2008 23:51:16 GMT -5
ISEE Index
The ISE Sentiment Index is a unique put/call value that only uses opening long customer transactions to calculate bullish/bearish market direction. Opening long transactions are thought to best represent market sentiment because investors often buy call and put options to express their actual market view of a particular stock. Market maker and firm trades, which are excluded, are not considered representative of true market sentiment due to their specialized nature. As such, the ISEE calculation method allows for a more accurate measure of true investor sentiment than traditional put/call ratios.
Because of this distinctive calculation methodology, ISEE has been referenced by The Wall Street Journal, Barron’s and other leading publications as a useful investment tool. Investors and investment professionals can use this unique put/call value to determine how other investors view stock prices, as well as to supplement and validate their own market views.
www.ise.com/WebForm/viewPage.aspx?categoryId=126&header3=true&menu0=tstock picts are in Put/Call Data section in the right corner of the page
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Post by Emperor AAdmin on Nov 18, 2008 23:58:53 GMT -5
This is extremely important tool. It filters noise and give a more accurate reflection of reality. Example: A given symbol has 1000 put contracts and 1000 call contracts. On a first glance it looks even. What if all 1000 call contracts are done by 1000 different people and all put contracts were done by ONE person. Doesn't look even any more does it. ISEE filters out through this to reflect a more accurate picture. How to read it. It appears that in the case of QQQQ any reading in ISEE above 100 in two consecutive days is a buy position (especially if the stock appears discounted) and if ISEE is bellow 30 in two consecutive days is a sell position (especially if the stock appears overpriced). 100 and 30 readings are for stocks whose 52 Wk. High is bellow 3k while stock whose 52 Wk. High is double that would have numbers such as 200 (buy) and 60 (sell) instead. www.ise.com/WebForm/md_livevol.aspx?categoryId=124&header3=true&menu1=trueQuotes/Volatility
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Post by Emperor AAdmin on Feb 26, 2009 11:21:36 GMT -5
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