CPC Put/Call Ratio Daily Chart Signals Significant Market Top

Traders continue along on the long side taking a complacent approach to markets since the Fed and BOJ will always be there to pat their behinds. There is no wall of worry but instead markets are climbing a wall of stimulus.  The low VIX, now under 13, also verifies the complacency and lack of fear shown by the CPC in the 0.7's again.  The important tops and bottoms are identified by the double circles. The CPC provides a signal to long stocks from an intermediate time frame perspective (weeks and months) when the ratio moves above 1.20. This marked the mid-November bottom, barely. Fear has been absent from markets ever since purely due to central banker easing. The central banker intervention is likely the reason that the CPC has been signaling bottoms at lower points recently, more at the 1.10+ level than 1.20+.  The CPC provides a sell signal when the ratio falls under 0.80 and prints in the 0.7's and lower. The low CPC shows traders completely unconcerned that any market downside will occur.

It is a broken record. The ragtime upright piano player rolls up his sleeves as he prepares to play the same song once again for the umpteenth time.  This is a significant market top and perhaps today will mark the top. Each market pull back is met with dip-buyers using the Fed and BOJ easy money. It is time for another run at the downside so we see if the dip buyers still have resolve, or not, moving forward. Stocks are not attractive on the long side until the CPC prints above 1.20 to show that a proper correction has been made and the weak hands have all been washed out placing a sturdy market bottom. 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.