CPC Put/Call Daily Chart

CPC has finally moved above 1.1 to levels not seen since December 2011.  Last Fall, November saw a selloff and as the markets were in a swoon, the ECB anounced LTRO1 and said that LTRO2 would be on its way as well.  The markets received their crack cocaine so the broad indexes rallied into 2012 and continued upwards fueled by tech and AAPL hype. The green circle in December, the last reading above 1.20, identified the market bottom.

So for four months we travel thru a rolling top in the markets with the readings under 0.80 highlighting the complacency in markets with traders having no fear of a market downturn, and that is when the downturn occurs.  Above 1.2 shows that fear is making its way back into markets.  A market rally can occur at any time now since the 1.2+ was printed.  If markets sell off, that would make life easy since the CPC would climb higher to 1.3, 1.4, and these numbers make it very easy to play a recovery rally by bringing on longs since a rally will begin at any time.  If markets recover right away, tomorrow, Monday, the CPC will drop under 1.2 but now that the cat is out of the bag, higher CPC's and lower markets would be anticipated as time moves forward. The CPC will likely explore this plus 1.1 area further now that a five-month trend is broken.  The CPC should at least match the December number as the days and weeks play out. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.