Saturday, July 25, 2015

CPC and CPCE Put/Call Ratio Daily Charts Signal Near-Term Bottom At Hand

The CPC and CPCE put/call ratio's leap higher on Friday indicating palpable worry, fear and angst by traders. A tradeable bottom in stocks is at hand and will begin anytime in the days ahead. Usually the snap-backs are sharp which hints that Monday may be a rally. The central banks control the markets so if the PBOC (China) announces more stimulus today or tomorrow, of if the BOJ (Japan) or ECB (Europe) print more money early next week the bounce will begin quickly. If the central bankers remain quiet some further weakness in stocks may occur early in the week to further develop a bottom but the put/calls say a near-term bottom is on tap for stocks in the days ahead say beginning anytime next week.

The FOMC two-day meeting is on Tuesday and Wednesday so stocks will likely float higher into Fed Chair Yellen's promises to run the printing presses dropping dollars from helicopters indefinitely. This bullish outcome is in sync with the charts above.

The green circles show the recent forecasts for stock market bottoms and the red circles are predictors of market tops all of which occur. The put/calls are elevated right now; what do you think will happen? 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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