Wednesday, September 4, 2013
CPC and CPCE Put/Call Ratio Daily Charts Signal Market Top
The complacency saga continues. Keystone continues to highlight hte CPC and CPCE put/calls since they show what traders are actually doing, not what they say they are doing on television appearances. No matter who waxes worry on the air waves, the bulls continue to buy the market believing in the Fed and other central bankers. The crack cocaine easy money has been supplied for years now, so the junkie traders are hooked and only see markets through these rose-colored glasses now. The charts show complacency in charge. Trading volume is at 15-year lows which opens the possibility that the exit door may be quite small for the herd unraveling positions.
The put/calls indicate that a significant market top is in place, contrary to the significant bottom in June. Stocks are not attractive on the long side until the CPC moves above 1.2 and the CPCE moves above 0.76. Until then, keep refining the long shopping list deciding which stocks you would like to own, study their fundamentals and charts so you can make steady confident decisions on going long when the time comes. When the put/calls shoot skyward, the panic and fear will create a worrisome market, so if you are ready with long selections and did your homework, you will be strolling through the fire and carnage whistling a happy tune as you scoop up bargains for the long side. Bears are favored moving forward until traders display fear and panic like mid-June. 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.