Thursday, May 19, 2016

CPC Put/Call Ratio Daily Chart Signals Near-Term Bottom

Traders are experiencing rampant fear and panic which indicates that a near-term stock market bottom is at hand. Traders have not been this fearful since the mid-February bottom. The market bulls are happy to see this chart. The CPCE put/call ratio has not jumped higher as yet. Thus, stocks may perform a rally move and then retreat again after a few days to reset for another bounce after the CPCE spikes higher to match the CPC.

Stocks will likely begin a rally at anytime any day ahead so if you are not short the stock market already then it is likely not worth chasing stocks lower and consideration should be given to cover shorts in the hours and couple days ahead and put on a couple longs (for VST trading and day trading). Market bears need bad geopolitical or other news which would create negativity, otherwise, the bulls are going to get a turn at bat going forward in the very short term. 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 Saturday Morning, 5/21/16: Stocks launch higher in the Friday trade due to the excessive negativity as evidenced by the elevated CPC put/call above. 

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