CPC Put/Call Daily Chart Signals Significant Market Top
A few days ago the uber low 0.74 print signaled that the bulls are drunk with lofty euphoria. Traders are complacent now, no fear whatsoever, and are expecting nothing but upside fun ahead. The CPC serves as a contrarian signal. Typically allow it some breathing room of a few days for its ominous prediction to come to be but now that a 0.70 has printed, this is obscenely bullish with total disregard that any market downside will occur; the broad markets appear to be placing a very significant top.
Note the red circles that show the significant tops over the last year for the markets. The double circles highlight the especially important May 2011 top, which was the top for the year, and the July top, which marked the start of the August waterfall crash. What do you think is about to happen?
Wonder where are the sellers. This mkt is ridiculous and needs to be slap down hard.
ReplyDeleteI'm still waiting for the large selloff for more than a month now
ReplyDeleteThe market top and coming sell off appears to be at the door step now, the tools are lining up. A stutter step should occur with a market sell off, then recovery likely back up to the current index prices again, then a larger down move as the VIX weekly chart hints.
ReplyDeleteThe bears will have to make a move now, otherwise, considering that Keystone's secular signals are starting to click back on the bull side, the bulls will be running strong into the summer.
The likely outcome is a market failure in the days ahead. Watch Keybot, posted in the left margin which would serve as confirmation for any serious market down move.
If bearish, the four key items you want to see are CRB under 311.50, SPX under 1283, NYA under 7690 and the weakness in the utes continuing, with UTIL falling under 439 in the days ahead. These items would seal the fate for the bulls and provide the bears victory. If prices remain above these levels, as they are now, the bulls rule.