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Chart of the Week: The ISE Sentiment Index (ISEE)

Posted By Barry Ritholtz On December 2, 2003 @ 3:43 pm In Finance,Media | Comments Disabled

The International Securities Exchange [1] devised a new contrary sentiment gauge: The ISE Sentiment Index (ISEE [2]).

ISEE is more than a mere put/call ratio. It distinguishes between options bought by investors from those sold (the motivations are very different).

New Contrary Indicator: ISEE
ISEE.gif
Source: Barron’s [3]

ISEE data [4] focuses only on calls and puts bought by customers. According to Barron’s, “That includes everyone from individuals to hedge funds and money managers, but excludes professional traders like market makers and the proprietary trading desks of Wall Street firms, whose option transactions often have no directional bias and are undertaken to hedge decisions in other markets.” This new contrary indicator will be worth watching.

Random Items
Why Americans Must Keep Spending [5]
Dollar decline raises new concern for US [6]
Japan boom may be only false dawn, critics warn [7]
No Basking in ‘Black Friday’ Glory [8]
The riddle of the bonds [9]

Quote: “A word to the wise is enough; for it is true, we may give Advice, but we cannot give Conduct.” -Benjamin Franklin [10]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2003/12/chart-of-the-week-the-ise-sentiment-index-isee/

URLs in this post:

[1] International Securities Exchange: http://www.iseoptions.com/

[2] ISEE: http://www.iseoptions.com/about/press/pdf/press_releases/2003/ISE_Launches_ISE_Sentiment_Index _(ISEE)_$20031201.pdf

[3] Barron’s: http://online.wsj.com/barrons/article/0,,SB107006300724442300,00.html

[4] data: http://www.iseoptions.com/marketplace/statistics/sentiment_index.asp

[5] Why Americans Must Keep Spending: http://www.nytimes.com/2003/12/01/business/01econ.html

[6] Dollar decline raises new concern for US: http://www.csmonitor.com/2003/1125/p02s01-usec.html

[7] Japan boom may be only false dawn, critics warn: http://www.chicagotribune.com/news/local/chi-0311280260nov28,1,7491540.story

[8] No Basking in ‘Black Friday’ Glory: http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20031201&ID=3151330

[9] The riddle of the bonds: http://www.economist.com/agenda/displayStory.cfm?story_id=2244281

[10] Benjamin Franklin: http://www.english.udel.edu/lemay/franklin/

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