CPCE Put/Call Ratio Daily Chart; Significant Stock Market Top Remains At Hand

The rampant, off-the-charts complacency has been ongoing for the last month. It is taking longer for these tops to click in because of all the central banker money. The central bankers are the market. Traders and investors are all-in with the stock market. Timmy Trader, who manages the Naive Fund, that has a streak of losing years, has placed all his clients money in the triple X leveraged tech ETF's. Nosy neighbor Gary is telling everyone that he took his entire life savings and bot AMZN stock; he plans to move to Florida next year with all his future profits.

Aunt Nancy, typically a quiet soul, pried up the floorboards in the basement retrieving her life's fortune that her deceased husband, Walter, placed there many years ago. Nancy took it to the financial advisor in town, the nice young man with a short haircut that wears a suit and tie each day, located between the laundromat and the thrift store. He suggested placing half in AAPL stock and the other half in the quintuple 5x ETF that is long the FAANG stocks.

Yes, it is the silly season. If you are new to trading and proud of yourself about recent profits, take the money and get out. Otherwise, you will get eaten alive. Once the selling starts, there will be no mercy. The lack of fear in the stock market is going to create a significant selling event. It will not be surprising to see the S&P 500 200 or 300 points lower a month from now, or more. You will not see a tradeable bottom untll the CPCE moves back above 0.80. That will tell you to start nibbling on the long side and it is time to buy those stocks you will be researching during the pending selloff.

With a CPCE at 0.42, get out of your longs and bring on shorts. There is likely no more time since a month has basically gone by and everyone is partying with Prince like its 1999. If you want to remain stubbornly long and are believing all the garbage you are fed on television and on the internet, take all available cash and throw it on the short side for a hedge. She's going to go down. S&P futures are looking soggy this morning down -18. VIX is a hair under 29. Plan accordingly. If you ignore the warning above you will regret it as you listen to Chopin. 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.