Monday, May 23, 2011

CPC Put/Call Ratio Daily Chart

CPC put/call has remained under one for the last few months showing complacency. There is no fear in the markets, no worries. Put/call is a contrarian indicator so if the majority of traders are complacent and care-free, well, it's time to worry. Typically, the 0.7's are a great signal to consider shorting the markets and a 1.2+ number is a great time to go long the markets for a bounce.

Thus, currently at 1.04, watch for a print over 1.2 to signal a bounce, until then, stay on guard for selling in the indexes. Keystone watches the 10 and 21 MA cross and also the 17 and 25 MA cross to indicate bullishness vs. bearishness in markets. If the 10 is above the 21, and/or the 17 is above the 25, these crosses indicate continued bearishness in markets, and visa versa. Note that the 10 is above the 21 and also the 17 is above the 25 currently, thus, expect market bearishness moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.

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