Tuesday, July 14, 2015

CPC and CPCE Put/Call Ratios Daily Charts Signal Market Top

The market roller coaster ride continues. The stock market sold off resulting in the high +1.30 prints on the CPC and +0.85 prints on the CPCE signaling a tradable market bottom and boinngg, the bounce occurs. Now check out the collapse in the put/calls. The level of trader complacency is remarkable. Fear and panic started to rear its ugly head (indicating a market bottom) but that was short-lived with put/calls collapsing showing an immediate return to trader complacency and lack of fear. Traders know the central bankers control and will pump the stock market higher indefinitely so the buy-the-dip crowd remains active and traders are relaxed expecting continued upside joy ahead.

The low put/calls indicate a market top at hand at anytime in the days ahead. It can occur quickly today or tomorrow, however, the top should be in before early next week. The new moon hits tomorrow evening at 9:24 PM EST and stocks are typically weak moving through the new moon each month. Thus, there is a tradable market top occurring now and picking a spot for a short trade in the hours and few days ahead appears prudent. 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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