Thursday, March 3, 2016

CPCE Put/Call Ratio Daily Chart Signals Significant Market Top At Hand

The CPCE put/call ratio drops to 0.55 signaling uber complacency and lack of fear exactly when a market top typically occurs. Everyone is convinced that the train has left the station and the stock market rally will continue. Traders are buying stocks today while smoking cigars and drinking champagne. They pat each other on the back and tell one another how smart they are impressed with their own intelligence. This complacency results in a selloff. The selloff should begin at anytime and likely drop from 40 to 120 SPX handles.

The SPX daily chart is very constructive for higher highs. So stocks may flush lower because of the NYMO, CPC and CPCE, but the drop may be fast and fierce and then followed by a quick recovery so nimble trading is likely required. Keystone has brought on index shorts over the last couple days. Keybot the Quant remains long the market (the algo is not designed to catch exact tops and bottoms). 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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