Sunday, November 13, 2016

CPCE Put/Call Ratio and SPX S&P 500 Daily Charts; Complacency Returning

A couple weeks ago, Keystone highlighted the elevated CPC and CPCE put/call ratios signaling fear and panic and a stock market bottom likely. It begins last Monday and stocks run higher all week long; the afterburners kicked in on the Trump election win.

Sentiment now goes from panic and fear back to complacency at 0.53. Traders are tripping over each other last week buying stocks with total disregard for price. Investors sip Fed wine and joyfully hit the buy button. Traders are back in the complacency and lack of fear mode which creates a near-term stock market top. The CPC put/call has not retreated lower as yet so watch that to come down to agree with the CPCE which will lock in a stock market top in the near-term. The CPCE indicates that a top in stocks is likely at anytime in the days ahead, say, this week sometime. Then stocks will sell off again until a level of fear and panic occurs at 0.80-ish and higher. 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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