Sunday, June 21, 2015

CPC and CPCE Put/Call Ratios Daily Charts

The CPC and CPCE put/calls have printed consistently low numbers over the last month signaling a significant market top in play. The red circles show some of the recent market tops while the green circles show several of the recent market bottoms. A proper tradeable market bottom occurs with the CPC at 1.20 and higher and the CPCE at 0.80 and higher and as seen from the charts above, the bottoms in June thus far are very cheesy and uninspiring. The case can be made that the last tradeable market bottom was back in March.

The Federal Reserve and other global central bankers have markets twisted into a pretzel. The obscene Keynesian money printing has destroyed price discovery creating asset bubbles in all asset classes despite the vast majority of market participants proclaiming that there are no bubbles in the market. The put/calls indicate that it is prudent to not be long the market until the CPC moves above 1.20 and CPCE above 0.80. Perhaps Greece turmoil may finally introduce palpable fear and panic this week. If not, then the put/calls will travel lower again and only further signal that a significant market top is at hand. The Fed and other central bankers have pumped stock markets higher for six years running and this game is very long in the tooth. 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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