Monday, June 29, 2015
CPC and CPCE Put/Call Ratios Daily Charts Signal a Market Bottom at Hand
Remember that Keystone highlighted the low CPC and CPCE put/call ratios over the last couple weeks or so expecting a market top due to the uber complacency. The top occurs. The idea was to wait for the put/calls to spike where a tradeable bottom can be placed. That occurs today as traders are experiencing fear and panic. The CPC jumps to 1.38 and CPCE to 0.94. The uber high readings match up with the October market low and also the early August low. It may take a day or few to place a rigid bottom for stocks but with these high readings, long positions can be nibbled on and the scaling in process for long plays can be started. A stock market bottom will occur at anytime in the next few days.
The Federal Reserve and other central bankers are the market. Interestingly, the PBOC cut rates and lowered the triple R's on the weekend but the SSEC sold off anyway. The ball is in ECB President Draghi's court; he was quiet today. The market bottom in stocks will likely occur when Draghi proclaims that he will run the printing presses full tilt to mitigate Greece turmoil. The central bankers are the market. 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.