CPC Put/Call Ratio Daily Chart Signals Significant Market Top
We have watched the CPC put/call chart trend lower over the last three weeks. Readings in the 0.7's show uber complacency and fearless traders. Well, with a 0.75 print occurring this evening, these uber optimistic bullish traders had better get a good nights sleep tonight because they will have plenty to fear in the near future. This low CPC reading signals a major market top in place now. The markets should roll over now and it will be nasty, likely very similar to the May selloff. If you have not added market shorts, or are not properly hedged against the downside, then it it time for you to worry, and, it may already be too late. Projection is for a dramatic broad market selloff now as the put/call complacency turns to fear in short order. 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.
great chart KS. Pretty much everybody and my neighbor are buying calls right now it appears I saw a nice article on bullish sentiments reaching higher highs (the last 6-7 sideway days have people think the market is consolidating for the next big leg up, which may happen, but more likely than not it won't) In other words: the narrow trading range results in strengthening bullish sentiment: as prices continue to "levitate" everyone piles into the trade - yet prices languish or at the least - under-perform expectations but after all, a "low volume pullback" is considered bullish overall... Right!? KABOOOM Wrong in this case, the put/call ratio confimrs this sentiment and vice versa. Now that everybody is long, has calls, etc there are no more buyers left so there's only one more way to go...
ReplyDeleteWell said Arnie.
ReplyDeleteI watch this indicator also but was puzzled back in January when it was lower but the markets continued to march higher. Who knows?
ReplyDelete