Friday, January 15, 2016

CPC and CPCE Put/Call Ratios Daily Charts Signal Near-Term Market Bottom

If you speculated on the long side as the blood was flowing in the streets, the put/call ratios will make you happy and help you enjoy the 3-day holiday weekend more. Markets are closed on Monday for Dr Martin Luther King Jr Day holiday and will reopen on Tuesday, 1/19/16. The CPC and CPCE put/calls spike higher clearly showing that panic and fear has arrived. Therefore, due to the contrarian nature of the indicator, a stock market bottom is at hand at anytime likely early next week say Tuesday or Wednesday.

The countertrend bull rallies during a bear market downturn can be quite violent and powerful to the upside so watch out for those shenanigans. The VIX remains elevated so stocks will continue printing huge intraday and day to day moves. The stock market can easily print a rally to the upside that completely reverses what occurred today to the downside. Next week will be interesting.

The NYMO remains at negative numbers and is screaming for a market bottom to be placed. The uber low -1400 TICK today at 12:32 PM EST marked the exact bottom in the stock market at SPX 1857.83. Ditto the VIX peaking at that same instant at the height of negativity. These behaviors are indicating that a near-term market bottom is at hand next week as long as oil and China behave. 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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