🌟 Capital Market Chronicles – Episode 284: TECHNICAL ANALYSIS – MARKET INTERNALS (Part IV)
“When everyone agrees, risk quietly increases.” ⚠️📊
Because markets are emotional machines.
📊 1. Put–Call Ratio (PCR)
Measures puts vs calls.
High PCR → fear dominates.
Low PCR → optimism dominates.
Extremes matter most.
When everyone buys protection, panic may be near exhaustion.
When everyone buys calls, optimism may be overpriced.
Markets reverse at emotional extremes — not at comfort.
💰 2. Margin Debt
Tracks borrowed money used to buy stocks.
Rising margin debt during a bull run:
-
Signals confidence
-
But also leverage risk
High leverage amplifies gains.
And magnifies pain.
Excessive margin debt often appears near market peaks.
Because optimism loves borrowing.
🐂 Bull vs 🐻 Bear Conditions
In bull markets:
Strong breadth + healthy sentiment = sustainable strength.
In bear markets:
Extreme fear can signal potential bottoms.
Sentiment doesn’t predict timing.
But extremes often mark turning zones.
Psychology is invisible in price charts.
But it is visible in internals.
And ignoring sentiment is like ignoring weather before sailing.
Next: Practical application, divergences, and limitations.
⚠️ Disclaimer: This Blog is for general guidance only and does not replace personalised financial advice.
🌐 Stay tuned to Our Blog https://www.stockmarketpedia.in/home/blog — where we decode the stock market one laugh at a time. 😎💰
📖 Craving deeper dives and serious know-how (minus the financial snoozefest)? Surf over to: https://www.stockmarketpedia.in/
📚 Prefer your reading with chai in one hand and market wisdom in the other? Now available on Amazon Kindle
Stock Market Decoded - A Beginner's Guide to Smart Investing by P. Shirley — perfect for sounding smarter than your portfolio at dinner parties.
Money Money Money – Tickling You into an Investing Habit by P. Shirley — the nudge your lazy rupees have been waiting for.
Want to open an account with Mirae Asset Sharekhan?
Got burning questions about bulls, bears, or bizarre market behaviour?
Ping us at: stockmarketpedia4u@gmail.com
WhatsApp: 8300840449
© 2026 Stock Market Pedia. All Rights Reserved
No comments:
Post a Comment