Sunday, October 18, 2015

CPCE Put/Call Ratio Daily Chart

The CPCE put/call ratio is dropping down towards complacency again. Ditto the CPC. Why wouldn't they after the central banker dovish talk late last week and market participants realizing the Federal Reserve will not raise rates until well into 2016. That means the easy money Keynesian policies continue and the liquidity will keep pumping stocks higher. It is shameful what the Fed and other global central bankers are doing to the economy and markets. The separation of rich and poor in America is at the greatest divide in 50 years.

The lower CPCE is consistent with trader complacency and where a top occurs in the stock market. A top in equities is likely at any time during the week ahead. Stocks will sell off until the put/call rises to the green circles. If stocks continue sneaking higher early in the week the put/call will likely drop further only sealing the fate more that a near-term stock market top is at hand.

Remember to respect the CBOE SKEW chart posted the other day. Scroll back to review that chart or type 'SKEW' in the search box at the right margin to bring up prior charts. The elevated Skew indicates that a significant market top is at hand anytime forward. 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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