Browse Symbol Stacks: $SPX: 20160723_SmartToDumbRatio.png

Please explain I am dumb...is any extreme caused by dumb money? 
 
http://www.wallstreetcourier.com/v/ci-equity-options-call-put- ratio.htm 7/23/16

!10PCROEX (OEX put/call ratio) represents "smart" money, !10PCREQU (equity put/call ratio) represents "dumb" money. These ratios generate bearish signal in case !10PCROEX get extreme highs ("smart" money is bearish) and !10PCREQU get extreme lows ("dumb" money is bullish). These ratios generate bullish signal in case !10PCROEX get extreme lows ("smart" money is bullish) and !10PCREQU get extreme highs ("dumb" money is bearish). 7/23/16

What's the appropriate item to trade for this indicator? Calls, Puts (buying or selling) for a various index or ETF? 
Appreciate any insight! 7/24/16

In case of bearish signal one can buy puts on SPY (etf) or buy inverse s&p500 etf. But keep in mind s&p 500 and this indicator can go higher before pullback begin. 7/24/16