The put-call ratio is a behavioral checkpoint, not a trade trigger, offering insight into emotional extremes in the market. It helps long-term investors stay grounded by recognizing sentiment shifts during periods of euphoria or panic. While not a tool for generating trade signals, it serves as a valuable lens for understanding market behavior and investor emotions. The ratio, as framed in the article, emphasizes the importance of acknowledging market sentiment without claiming to predict superior returns or mimicking hedge fund strategies. It is a tool for enhancing investor awareness and fostering discussions about the impact of emotions on the investment process.
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