Tuesday, May 12, 2015

CPC Put/Call Ratio Daily Chart Signals Market Top

The put/call ratio's remain very active. The CPC collapses to 0.56 showing a complete lack of fear that the stock market can ever go down again. Traders completely trust the global central bankers to pump stocks higher forever. The red circles are market tops. The green circles are market bottoms that occur once fear and panic appears. What do you think will happen as the days and next week or two play out?

Interestingly, the last time the CPC dropped this low was in early 2011. After that, the stock market topped out in 2011 around April, the waterfall crash occurred in August, and stocks bottomed in October 2011. The SPX moved from 1350 to 1080 from springtime 2011 into the end of the year with a drop of 270 points, -20%.

For the near term, the low 0.56 number simply means a market top will occur anytime over the coming days. S&P futures are down -11 but this may be an initial fake out move lower. Markets should top out this week, however, as per the uber low CPC. 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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