CPCE CBOE Options Equity Put/Call Ratio Daily Chart

With the stock market drop, now about -4% off the 8/2/13 top two weeks ago, traders are tripping over each other to buy the long side. The recent action does nothing to increase fear. Traders remain complacent and fearless, after all, Chiarman Bernanke is going to ride in on a white horse any minute and pat everyone's behinds sending equities higher again, so, as Alfred E. Neuman opines, "what, me worry?" The April top occurs due to lack of fear. The April bottom due to panic. The May top due to complacency and lack of fear. The June bottom due to panic and fear. The August top to begin the month occurs due to continued complacency. When will the bottom occur? August? September? October? Stocks are not attractive on the long side until the CPCE prints above 0.80, when fear and panic appears in traders' eyes. 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.