Thursday, June 22, 2017

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

The CPCE put/call ratio plummets to a low not seen in over one-half year. The 0.50 reading indicates that traders are complacent. There is no fear that the stock market will ever go down. The central bankers keep pumping equities higher to reward the wealthy (that own large stock portfolios) so there is no reason to worry. Investors are drunk as skunks performing jigs of joy as they buy stocks with total disregard for price. Every day is a party; the put/calls drop and the VIX (volatility) keeps printing a 9 and 10-handle.

The red circles show the market tops over the last year. The green circles show the market bottoms. What do you think will happen? Above the green line at 0.80 represents fear and panic and blood in the streets. Investors are screaming and panicking, some jump out of windows; hopefully they are only on the first floor. This panic tells you to buy the stock market with both hands.

If you have been contemplating cashing out of some long positions, the chart above tells you to hurry up and throw them overboard and nibble on the short side. The stock market would be expected to top out at any time, any  hour, any day ahead, due to the rampant complacency, and tumble lower giving all the fearless people something to worry about. 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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