Monday, September 9, 2013
CPCE and CPC Put/Call Ratio Charts Signal Significant Market Top At Hand
The put/calls are at uber low levels signaling that markets are about to take a dramatic move lower. Equities are at a significant market top. Traders are over-the-top complacent and worry free; traders see a rosy-colored world looking through the Fed glasses. The low put/calls signal that traders think nothing can possibly go wrong and markets will go up forever. Over the next month, traders will come to experience panic and fear.
The market sell off should start at any time over the coming days. The momo push higher today may have a bit more juice and bulls may want to fill the SPX 1680-1685 gap first, and this may be the last hurrah for markets. The key SPX S/R is 1669, 1680 and 1691. It would not be surprising for the SPX to dump 50 to 100 handles or more beginning at any time. Make sure you have protection in place and any longs you are not fond of, it is now likely time to throw them overboard. Any other longs held should be positions you are willing to hold for one or two years, or more. If you do not like them that much, then consideration should be given to kicking them down the stairs. The next month will be interesting for markets. An important market top is at hand. 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.