The CPC and CPCE put/call ratios remain skewed to the complacent and fearless side (so a stock market pullback is expected going forward). Traders believe the corrupt Federal Reserve and banksters will always save the elite stockholders with taxpayer money so everyone is anxious to buy any dip. Weak shorts also are quick to jump ship adding short-covering fuel for quick upside spurts.
The three green circles show the last three legitimate bottoms for the stock market as traders threw out the baby and the bathwater and swore they would never own a stock again. What does this (contrarian) signal tell you? Yes, you do not want to buy the broad market long until panic and fear shows up above CPC 1.20.
The bottom a couple days ago was cheesy with the CPC rolling over again. Traders and investors are fearless and trained that the stock market will always be saved so buy, buy, buy. The blind long players need taught a lesson and that occurs when the CPC spikes wildly higher as stocks drop. Perhaps the Wednesday Fed announcement will be the catalyst when Pope Powell brings the tablets down from On High and tells global traders how to trade.
Watch utilities closely. UTIL 960-962 is a critical line in the sand for the US stock market. A rally will occur if UTIL pops above 962 and trends higher. However, if UTIL remains below 960 and trends lower, there will be Hell to pay going forward which is in sync with the CPC chart above. Check UTIL or DJU at the opening bell.
New money comes into the stock market for a new month which may buoy stocks. The stock market also typically rallies the 2 days preceding the Fed meeting (Tuesday and Wednesday). The First Republic bank failure and sweet deal for corrupt JPM is in play today. Crony capitalism run amuck. The fun continues. 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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