CPC Put/Call Daily Chart

Green circles show market bottoms and red circles show market tops. Numbers under 0.70 mark extreme complacency and total lack of fear--exactly when the markets top and sell off dramatically. Numbers above 1.20 signal that a recovery rally is needed due to the high level of fear and worry in the market, again, a contrarian indication. The circles show the recent market tops and bottoms that show market rallies beginning at 1.3 and higher and market sell offs occurring at 1.00 or lower. It is obvious that the chart is best used for identifying bottoms rather than tops.

Nevertheless, 0.70 or lower marks significant market tops and readings of say, 0.90 or lower hint strongly at a market sell off coming. Thus, over the last couple weeks, the low readings in the 0.85 to 0.95 area show that traders were leaning towards complacency, not all that worried considering all the dire news. But that changed last week as noted by the move back up to 1.2. Thus, the NYAD shows that a quick sell off is needed but the CPC is leaning towards a rally to begin very soon as the CPC prints 1.20 and higher over the next day or two. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.