Sunday, November 25, 2018

CPC and CPCE Put/Call Ratios and SPX S&P 500 Daily Charts; Near-Term Bottom at Hand

There is fear and panic in the stock market typically a time to buy. The blood is flowing on Wall Street. The CPCE put/call prints 0.85 not seen since February when the 0.85+ number (yellow stars) identified the stock market major bottom that still holds 10 months later.

The green circles show fear and panic at peak levels with traders buying puts like madmen seeking protection from a collapsing stock market. Of course, when everyone and his brother is becoming bearish and in panic mode, that is when the market bottom occurs. The CPC is elevated at 1.12 but not yet at recent highs. The SPX could very well drop another 20 or 30 handles, if so, that would send the CPC higher and CPCE above 0.85 further cementing the pending near-term bottom.

The stock market may bottom at anytime, any hour, any day going forward. If you benefited from the short side it is a good time to pare back these positions and start to nibble on longs for trading in the daily time frame. 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.

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