CPC Put/Call Ratio Daily Chart; Rampant Complacency and Bullish Euphoria Continue Signaling More Pain Ahead for Stocks

The put/call ratios remain in the cellar verifying the rampant complacency, fearlessness, and bullish euphoria, like the dotcom bubble, that is unshakable. Comically, the worse the news, the better for stocks. Ebola outbreak? Yippee, buy, buy, buy. Ongoing Iran War confusion and Donnie mixed messages. Great. Buy stocks. Dysfunctional Washington, DC. Fantastic. That is a buy. Fantastic Cat sings So Glad You Made It with Adam Duritz sitting in. The list goes on. Traders and investors believe in artificial intelligence as their new god, like worshipping the golden calf in the desert. AI will fix everything and humans will be free to frolic in an abundant utopia participating in unimaginable debauchery. Don't hold your breath.

The green circle shows when panic and fear started to hit (preferably above 1.2 but 1.15 was good enough for government work). The higher put/call signaling fear and panic called the bottom at the end of March. So here we are a couple months and more later in party mode not caring about anything anymore. Shoot those missiles, baby, and buy those stocks. Of course, the euphoria will end because everyone needs taught a lesson for their partying ways.

Everyone remains on the bull side of the boat, listening to Yacht Rock, partying all night long expecting stocks to jump higher every day forward. Folks are wearing their "Dow 50K, SPX 7.6K and SPX 7.5K" party hats swigging down Fed wine looking forward to Wizard Warsh bringing the tablets down from On High on Wednesday and tell everyone how to trade. Wednesday Addams.

The stock market has not yet pulled back to any great extent. Expect far greater drops in equities going forward until people are beaten out of their bullish euphoria mindset and take on gloom, doom, panic and fear, and that will be time to nibble on longs, in the daily time frame. 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.