The low CPC and CPCE put/call ratios continue. The stock market is pumped higher on the central banker happy talk. The Fed, ECB, BOJ, PBOC and others are flapping dovish wings promising easy money forever so stocks move higher and complacency festers. Typically, stocks would have pulled back in the near-term already due to the low put/calls but the joyous central banker pumping overrides all. The central bankers are the market.
S&P futures are up +16 points and the VIX sports a 15-handle about 6 hours before the regular US trading session on Tuesday. Congress may have reached a deal on the government shutdown situation and President Trump keeps boasting of trade talk progress and a potential meeting with President Xi.
The rally will provide a nice place to bring on shorts and add to existing shorts. If the stock market pops as the futures show, the CPC may dip down to the 0.80-ish level again further into complacency. The last tradeable bottom in the stock market was when the blood was in the streets in late December. The prior SPX weekly chart hints at another high in price and the S&P 500 may be trying to come up for that top now.
The low put/call ratios and NYMO remaining elevated tells you that another wash-out in stocks is likely coming in the days ahead. A pull back of 40 to 100 points in the SPX would be expected. Of course the news flow and central bankers will continue sending stocks to and fro. 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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