CPCE CBOE Put/Call Ratio Signals Near-Term Top At Hand

The low CPCE put/call was pointed out a couple days ago and now, it prints even lower collapsing to 0.51 signaling rampant compalcency. Traders are drinking Fed champagne and ECB wine while toasting Trump's inflationary agenda. The cab driver has his vehicle double-parked while he runs inside the NYSE to place his entire life savings in the stock market. Aunt Nellie, who is typically frugal, took her entire life savings, that she kept in a worn out orthopedic sock, to the broker and bought stocks. Everyone is worried that they missed the Trump stock market train. They are running down the tracks throwing money at any stock they can find.

The low put/call indicates rampant complacency. Markets have felt euphoric since the Trump presidential victory. When all the traders are positioned on one side of the boat, drunk as skunks, and buying stocks without concern for price, you know what typically happens. There should be a near-term top in play at anytime any hour any day forward. Stocks should sell off until panic and fear appears again. Humans are emotional creatures. 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.