Thursday, September 26, 2013

CPC and CPCE Put/Call Ratio's Daily Charts Signal Significant Market Top

The low put/calls signal a significant market top at hand. About one week ago the markets topped and rolled over, but today a relief bounce occurs. The complacency and lack of fear is verified by the charts above. The put/calls collapse to the lows from a couple weeks ago locking in another market top within the next few days. Everyone knows the drill by now. If you do not have downside protection, get some. Longs can be exited and staying in cash for the next couple weeks is a prudent strategy for those that only prefer to play the market from the long side. Other options are inverse ETF's to play the market downside or buying puts or other advanced strategies. Any long that you are not willing to hold for say one or two years or more into the future, should likely be exited.

Prior analysis for the CPC and CPCE can be studied by typing 'CPC' in the search box at the right and bring up prior articles. The charts clearly show traders completely unconcerned about any negativity these days, even in light of the pending CR deadline now only 4 days away, 2 trading days. Traders are convinced that politicians will kick the can down the road, and the government will keep spending money they do not have, so there is no need to worry. The days ahead may be very epic in stock market history. Projection is for a substantial market sell off to begin at any day forward over the next week or two. The long traders must understand what fear is in the weeks ahead since they now have it far too easy for far too long, lounging around, wearing rose-colored glasses and drinking booze at lunch time. The panic and fear side of the spectrum will not be as pleasant. 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.

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