Friday, June 9, 2017
CPC Put/Call Ratio and SPX S&P 500 Daily Charts; Near-Term Top At Hand
The drop in the CPC put/call ratio verifies the rampant complacency in the stock market. Ditto the VIX sporting a 9-handle day after day. Also the CPCE although that put/call should drop a bit more to signal the off-the-charts market joy. You know what happens when everyone is loaded on one side of the boat.
The red circles show market tops and green circles show market bottoms. Generally, below the red line is a good time to short the market while above the green line is time to buy stocks with both hands. What do you think will happen?
The CPC has been giving many erratic signals over the last few months due to the ongoing market instability. Institutions are hedging their long portfolios skewing the data to and fro but the general relation should continue working. The CPC indicates that a top is likely anytime, any day ahead. The full moon peaked an hour ago right before the market opened for the regular trading session and stocks are higher moving through the full moon each month about 65% of the time, and today, stocks float higher through the full moon.
The stock market is printing new record highs as this is typed. Everyday is a euphoric party. SPX HOD 2442.07. 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, 6/10/17: On Friday, 6/9/17, the SPX top-ticked at 11 AM EST at 2446.20 a new all-time high, then promptly fell on its sword. The S&P 500 sinks to a LOD at 2415 a 31-point intraday crash. The SPX then recovered to close down 2 points on the day, -0.1%, at 2432. Selling volume is robust. The CPC spikes to 1.06.