Monday, March 28, 2016
CPC and CPCE Put/Call Ratios and SPX S&P 500 Daily Charts
The put/calls are dropping again indicating the ongoing complacency. And why wouldn't traders remain fearless? The ECB and Fed keep pumping stocks higher so everyday is a party. Investors dip their mug into the Fed punchbowl, become inebriated, and then start buying any stock with a heartbeat. The red circles show peaks in trader complacency; what typically happens? Yes, a market top since the optimism is way too euphoric and joyous.
There are two paths that are most likely; first, the purple path where markets begin selling off now and will continue lower until the put/calls print in the green circles, or, second, the brown line where stocks sneak out one to three days of sideways to sideways higher gains and then rolls over to the downside with stocks collapsing until fear and panic begins in the green circles when a rally will begin. 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.