CPC Put/Call Ratio Daily Chart Signals Significant Market Top

The put/call ratio's hits keep on coming. The fearlessness is rampant on Wall Street right now. The holiday eggnog is likely fueling this uber optimism even further. Well, the hangover is not far away. The low put/call ratio drama's continue for both the CPCE and CPC. The last bear in the market closed shop late last week and took the last Greyhound bus out of town on the weekend. There are only bulls remaining, now worshiping the golden bull idol, with a Caligula-style pre-holiday orgy. There is no wall of worry the markets climb but instead, a wall of Fed. No one is concerned about any market downside ever occurring again because of the Fed's support, the BOJ destroying the yen and the obscene buybacks courtesy of the Fed's easy money policies.

All good things come to an end. You know the schpeal. All longs that you are not willing to own for a few years should be tossed overboard. The short side is in vogue here forward. If you do not want to play the short side, simply sit in cash for a month or two and see what happens. Finish your long shopping list and once the CPC moves up towards 1.20 you can start to nibble on the long side again. Until then stay away from the long side. The low CPC says markets are placing a significant top right now. A drop in the SPX of 50, 100, perhaps many more handles, is on tap moving forward. It will be interesting to see if Santa arrives today to begin the Santa rally into the new year, or, the sled runs out of gas. 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.

Note Added 4:34 PM:  Guess where the CPC closes on Christmas Eve? 0.60. You have to love it. Not only did the last bear leave town a few days ago, even any family members and distant relatives have now left as well. There are only buyers remaining. When you look around wondering who the next fool is, and no one wants to receive the hand off, you realize its you. CPCE equity put/call ratio drops to 0.46. Complete and rampant complacency and lack of fear in markets. The Fed has trained everyone to not worry, be happy. The festive atmosphere suggests a permanently high plateau is now in place, perhaps reminiscent of Irving Fisher's remark in the late 1920's?