Tuesday, September 1, 2015

CPC and CPCE Put/Call Ratio's Daily Charts

The markets are a daily soap opera. This week begins with more strong selling to the downside. It is odd to see a first day of the month down since new money should be coming into the market. The red circles show the complacency rearing its head in early August which creates the stock market top. Then the green circle occurs identifying a tradeable near-term bottom for stocks, which occurs late last week.

The expectation was, and is, that the put/calls should drop into the red circles and as that happens stocks should float higher. But this week bulls are slapped in the face instead. Note the CPCE came down to 0.65-ish showing complacency at the same levels as the early August top. This drop in the CPCE helped create the pullback in stocks to begin this week. Both the CPC and CPCE remain elevated and need to rectify the uber high prints so the expectation remains that stocks should float higher and the put/calls lower towards the red boxes.

Seasonality remains in the bulls favor this week with the new month beginning and the pre-holiday bullishness expected on Thursday and Friday. S&P futures are up +15 as this is typed on Tuesday evening, 9/1/15. 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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