CPC Put/Call Ratio Daily Chart

With the large drop yesterday, the Dow Industrials losing over 150 points during the last hour of trading, nearly three points per minute for an hour straight, it is amazing to see a continued lack of fear. Complacency rules since traders are addicted to the Fed's crack cocaine easy money and the drug dealer said there is an unlimited supply coming. Even over the last year the moves above 1.20 (signaling a return of fear and panic) are rare. The November market bottom was identified by the 1.2+ print but this was only a tiny smidge of panic and fear, nothing to write home about.  So the market rally continued resulting in the roll over. The lack of fear suggests that the selling can continue for a while. Today likely wants to see a dead-cat bounce but the weakness should resume.

It is not attractive to bring on long plays until the panic and fear occurs. Buy when others are fearful and sell when others are greedy. We are waiting for the panic and fear to show up. But with a print of 1.15, no one is jumping from windows, and perhaps only a first floor window was opened during yesterdays tumble.  The day will come with traders running around like chickens with their heads cut off proclaiming to sell everything, the end is coming. That will correspond to a CPC spike or spikes above 1.2, 1.3, perhaps 1.4 or higher. A severe market sell off would print a CPC at 1.5-ish. Thus, the idea is to wait for the 1.2+ prints to begin occurring and that will be time to nibble on the longs from your long shopping list that you have put together over the last month. 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.