CPC Put/Call Ratio Daily Chart; Global Central Banker Collusion and Intervention Creates 4 Months of Stock Market Complacency

The long four months of market complacency is unprecedented. The low CPC put/call ratio, now at 0.93, verifies the complacency and lack of fear in the markets. None. Everyone's partying like its 1999. The cab driver said he bot AAPL stock with last week's paycheck. Aunt Harriet took the Ladies Guild money and invested it in tech stocks like her broker said to; she said the easy money returns will provide enough dough to fix the community hall's leaky roof. The shoe shine boy said he took his entire life savings and bot AMZN stock. Everyone is toasting their trades with Fed wine.

The last tradeable bottom was in the back half of December and early January (green circle). It is very atypical to see complacency last this long. All the uber lows in the CPC result in market peaks but the pullbacks are shallow. Dip-buyers, supported by global central banker largess, are grabbing stocks with both fists. Traders laugh and scoff at the idea that the stock market may sell off since central bankers plan on printing money forever. Well, that is typically when it does.

A significant pullback in the stock market has been expected for at least a couple months but the central banker Keynesian money printing and US-China trade deal happy talk choke off any downdrafts and boost stocks to new record highs. A pullback in the SPX of from 40 to 120 handles and perhaps much more would be expected going forward. The stock market will not begin providing a potential tradeable bottom until the CPC moves above 1.20.

The same commentary above goes for the CPCE put/call at 0.63. Traders are complacent. Intern Timmy said he sold his car and bot the QQQ's with all the money; he expects to cash out and buy an expensive sports car by Labor Day. Timmy says its a sure bet. A tradeable bottom will actually not occur until the CPCE prints above 0.80. 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.