ODD-LOT PURCHASE/SALES RATIO |
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| Historical data |
Past performance does not guarantee future results!
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| This indicator is calculated by dividing the weekly odd-lot purchases by the number of weekly odd-lot sales. Odd lot transactions are made by small investors who can not afford to buy or sell short a round lot of 100 shares of a stock. In the old days this indicator reflected the shorting activity of the smallest of the small guys who were usually dead wrong at bottoms and tops. Since the introduction of options however it has lost a lot of its value. Many traders also sell in 99-share lots in fast markets for a better execution of their orders. Year-end tax selling and subsequent reinvestment distort the odd lot statistics as well in the end of December and early in January every year. But the odd lot numbers are nevertheless an excellent indicator to measure prevailing negative sentiment in the market. The chart below shows the weekly Odd-Lot Purchase/Sales Ratio on a 4-week moving average. | |||
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Past performance does not guarantee future results!
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