Tuesday, December 29, 2015

CPCE CBOE Put/Call Ratio Signals Near-Term Market Top

Ay, Caramba! Holy smokes! This is ridiculous. The put/calls were higher signaling a market bottom at hand due to fear and panic so a market bottom and rally occurs today as would be expected. However, traders now swing all the way back into complete complacency again with the CPCE down to 0.54 and CPC put/call ratio down to 0.82. The stock market may continue rallying which would serve to send the CPC lower into the 0.7's an uber low number, however, the stock market should place a near-term top at any day forward due to the low put/calls..

Any further rally can be shorted. The choppy market behavior serves to chew up bulls and bears alike in recent days. It is best to trade less in this type of an environment. With the put/calls collapsing lower, it will be the bears turn at bat again with markets selling off beginning at any time forward. The SPX started December at 2080 and started the year at 2059. 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.

Note Added Friday, 1/1/16: Happy New Year. Markets are closed. The SPX topped at SPX 2082 on Tuesday and ended the week, month, Q4, H2 and year at 2044. The two-day spank down created by the complacency described above is 38 negative SPX handles, so far.

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