Sunday, November 23, 2014
CPC Put/Call Ratio and SPX Weekly Charts Significant Market Top At Hand
The other day the CPCE put/call daily chart was posted showing a low number like the CPC above indicating complacency rampant in markets again. Traders are staggering around each day drinking the Fed, PBOC, BOJ and ECB wine, now all mixed together in the same sacred chalice, buying any stock with a heart beat without regard for price. AAPL gaps higher. Even beaten-down garbage stocks catch a bid as the global liquidity continues to distort markets creating huge asset bubbles in all areas.
In early October there were lots of worries with the stock market plummeting and Ebola at peak concern so the fear created a bottom then the central bankers pump markets higher ever since. That sea of liquidity has now created lazy traders, blindly buying any stock that the dart lands on without fear or worry. Markets should top out at any day forward. Considering the Thanksgiving holiday, the top should be in before mid-December so anytime over the coming three weeks; maybe this week. Everyone expects nothing but up into year end especially with the obscene buybacks occurring at year-end, however, what better time to throw a curve ball? Watch your wallet. 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.