CPCE Put/Call Ratio and SPX S&P 500 Daily Charts; Market Complacency Signals Top

Keystone highlighted the low CPC and CPCE put/call ratios a couple weeks ago and the euphoria, complacency and lack of fear by market participants identify a top, which occurred, but if you blinked you missed it, and stocks poke higher for more record highs. These highs come with more uber lows in the put/calls. Traders are drunk as skunks on Fed wine and ECB champagne while smoking BOJ crack. Traders are in a euphoric stupor buying stocks at the ask.

The low CPCE signals another stock market top in the near term that will occur at anytime forward. The SPX print up at 2671.88, the highest number in the history of the stock market may serve as that near-term high.

The market bears are continually pounded since March 2009 due to the power of the central bankers. Most short-sellers have given up since it is futile to fight the power of the money printers. In the near-term, however, the joy is so excessive that stocks need to pull back and a retreat. A selloff of 20 to 80 handles in the SPX, or more, would be expected and no surprise at all.

Note how the bottoms that occur (green circles) are printing without the put/calls even moving up into the fear and greed range which is above 0.80 for the CPCE (this is a tradeable bottom where you can nibble on and build long positions). This firmly illustrates the power of the central bankers. The central bankers are the market. The bears are cheated month after month year after year but it is very likely the stock market is heading for a multi-year top at anytime within the next three months. Keystone can post a bunch of monthly charts if all the international viewers support the blog sites.

The expectation is for a pull back in stocks. If the stock market floats higher for a day or three, the call for a selloff remains in place and stocks will pull back from that level. The beat goes on. 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 12/16/17: The CPCE finishes the week at 0.57 remaining subdued. The CPC is on the move higher. It would be good timing for markets to begin dropping this week to ring out the complacency and introduce some fear.