CPC Put/Call Ratio Daily Chart

Time for an update on the CPC put/call ratio.  The market top was identified 7 and 8 days ago with the low 0.70 number showing that traders were far too complacent.  The worry has ratcheted higher ever since, in step fashion. The move up for the CPC over the last week is a begrudging move higher, the bullishness and trust in a positive fiscal cliff resolution remains. An attractive tradeable market bottom occurs when fear and panic is rampant, at CPC 1.20 and higher.

The indicators are long and strong so even if a market bounce occurs (which will send the CPC lower), higher numbers for the CPC are on tap moving forward. The red square shows the 13 MA moving above the 34 MA (CPC moving up) in October as the markets sank like a stone. The mid-November bottom occurred with the 1.23 print and the 13 MA dropped under the 34 MA (green square) which verified a market rally ahead (the CPC is moving down). Now the 13 MA is ready to pierce up thru the 34 MA again which would be in tune with falling equities markets. The projection is that selling will remain in the equities markets until the CPC prints above 1.20 at which time the market long side will begin to look attractive with a tradeable market bottom forming.  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.