CPCE CBOE Put/Call Ratio Daily Chart; Put/Call Ratio at 5-Year Low Signaling Rampant Complacency, Bullish Euphoria and Fearlessness; Sell, Mortimer, Sell

The CPCE CBOE Options Equity Put.Call Ratio dropped below 0.4 signaling rampant complacency, bullish euphoria and fearlessness in the US stock market. No one believes that stocks will ever go down again. The bears have all left town. There are only very bullish and euphorically bullish bulls remaining. Sure, that should work out well (said cynically).

The put/call ratio is the lowest since late 2021 when the stock market topped out. The SPX then crashed -25% over the next 10 months. The put/calls then spiked higher in Q4 of 2022 signaling rampant panic and fear so that was the perfect time to buy stocks. People's hair is on fire and they will do anything to get out of the stock market. A high put/call ratio signals that people never want to own stocks again as long as they live so you will be glad to take their shares off their worried hands.

John Doe, Sammy Sixpack, Savita Sucka and Bonita Bagholder are buying with both fists right now caught up in the AI and semiconductor hype. The guys and gals on television tell you to buy, buy, buy, because they are unloading their shares at the top locking in their juicy profits; they need bagholders so they pump and dump.

That is the purpose of that Trump account nonsense putting in $1000 for a child and telling them they will be a millionaire out of high school. It is silliness. What will these folks, now numbering in the millions, say when their Trump account is worth only $800 bucks a year from now? However, the wealthy class would have gotten theirs and then they will tell you not to forget that you are an investor for the long term (they weren't). Don't you love crony capitalism filth? It is a disgrace that the US government and corrupt investment houses tout the Trump accounts and not one single person ever said that "past performance does not guarantee future results." Instead, they provide fuzzy math promising vast riches every year forward forever. They are corrupt thieves always implementing policies that allow the backroom grift.

Applying the -25% to the SPX at 7723, that would be a drop of 1931 points, and a landing spot of 5792 by summertime if this 2022 fractal plays out again. The US stock market has rallied for the last 4 years with the AI hype carrying most of the load reminiscent of the dotcom bubble. Plan accordingly.

If you are new to stock trading and proud of yourself for making a little bit of money, get yourself out before you get hurt. Ditch your longs and let the money sit in your brokerage account in cash for the next few months. It is dusk now, and the sharks are starting to swim in the darkened waters anxious to begin feeding. Do you want to keep swimming? Sell, Mortimer, Sell. 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.