to Put & Call Tactician Main Page
To Use The On-Line Put & Call Tactician Service
on any of the numbers above to be directed to Column Heading Descriptions.
Option Stock Surveillance feature of THE PUT & CALL TACTICIAN
provides technial data on most option stocks.
The listing is arranged by industry to allow easier stock and market
analysis within groups.
||Displays, in a single value, a stock's current
technical posture. Zero is neutral. Positive values show proportionately greater strength
than average. Negative values show proportionate weakness. The majority of stocks will
have values between minus 6 and plus 6.
|2 - 4. Grade
this column, three measures of an option stock's relative strength (similar to grading
students in the classroom) are given. This type of grading is based on the popular
probability distribution known as the normal of "bell shaped" curve. When this
grading approach is used, usually 10% of the students receive A's, 20% receive B's, 40%
receive C's, 20% receive D's, and 10% receive F's. Students know at a glance where they
stand relative to the group. THE PUT AND CALL TACTICIAN grades option stocks in a similar
"S", "I", and "L"
in the column heading correspond to short, intermediate, and long
term relative strength values of option stocks to convey the stock's short-term
(most recent 1-2 weeks), intermediate-term (most recent 2-6 week), and long-term (last 6
months) historical relative strength values. For example, a stock which grades
"B/A/F" displays good short-term historical relative strength (shown by the
"B"), and very poor long-term historical relative strength (shown by the
"F"). This communicates the story of a stock changing character, and in this
case, the trend is one of improvement.
Another use of the letter
grades is to indicate long term buy and sell points for stocks. Long term investors should
be buying A 's and B 's, and selling D 's and F 's, in conjunction with the numeric
component of the Power Index. Sell on a decreasing numeric trend and buy on an increasing
numeric trend. For example, a stock that is carrying a grade of A or B offers a long term
buy signal when the numeric component of the Power Index begins rising after making a
trough. Conversely, a stock with a grade of D or F should be sold when the numeric
component of the Power Index begins trending downward after a peak.
|5. SYM BOL
the options are traded.
"C" = Chicago;
"P" = Pacific;
"X" = Philadelphia;
of options offered
"F" = February/May/August/November
"M" = March/June/September/December
|8. CUR PRICE
price of stock at close of market Thursday
|9. PCT CHG
of change in price since a month ago.
|10. SUP PRT
price-wise for the stock. Applicable only for stocks with a technical code of 1, 2, and 4.
|11. RES TCE
resistance for the stock, if it exists. Applicable only for stocks with a technical code
of 2, 3, and 4.
|12. VL TY
of the underlying stock. A value of 35 is average. This estimate of future relative price
action is used in the calculation of a stock's trading increment.
stock's current price as a percentage of its current 50-day average price. This indicates
if a stock is overbought or oversold. A value above 120 usually indicates an overbought
stock, and a value less than 80 indicates and oversold condition.
via "1, 2, 3, and 4, a stocks chart pattern.
1's are in upward trends and have the greatest upside potential.
2's are in upward trends, but are temporarily leveling or pulling back.
3's are in downward trends and have the greatest downside potential.
4's are in downward trends, but temporarily improved.
the codes in a 4 quadrant format, their relationship and the manner
in which a stock or group of stock cycles through the four codes becomes
more apparent. As the figure shows, stocks generally rotate counter-clock-wise
through the codes. This is depicted by the circular center arrow.
Option stocks coded 1 and
2 are in uptrends and codes 3 and 4 are in downtrends. The heavy horizontal line between
the two code groupings in the figure bisects the uptrending stocks (upper two quadrants)
and downtrending stocks (lower two quadrants).
Uptrending stocks tend to
oscillate between code 1 and 2 status as arrow "A" shows. When a code 2 stock
moves to code 1, it is labeled "Re-established-Buy", one of the PUT & CALL
TACTICIAN'S strongest buy signals.
Downtrending stocks in
the lower two quadrants (code 3 and 4) tend to oscillate between the quadrants as arrow
"B" shows. Code 4 stocks moving to code 3 status are labeled "Reconfirmed
Sell", one of our strongest sell signals.
Stocks move between the
upper and lower planes in a manner shown by arrows "C" and "D". When
large numbers of stocks make code 4 to code 1 moves (arrow "C"), or code 2 to
code 3 moves (arrow "D"), this signals - with a high possibility - that a change
in intermediates market direction has taken place.
The coded bar graph at
the bottom of Page 2 weekly shows the portion of stocks in each of our four technical code
categories. This graph and the lead and lag market lines are primary tools to forecast
market direction. This data is translated into easy-to-interpret Market Condition Codes on
each telephone Hotline update.
|15. COMMENT (TECHNICAL)
option stocks qualitatively using a stock's Power / Index value, its technical code, and
moving average. An interpretation of each technical comment is given: