CPC Put/Call Ratio and SPX S&P 500 Daily Chart; Near-Term Stock Market Top At Hand

As would be expected after today's upside stock market rally, the put/call ratios retreat lower deeper into complacency and fearlessness signaling a near-term top at hand. As the famous scholar Alfred E Neuman says, "What? Me Worry?" The central banker dovishness around the world creates a planet awash in liquidity. Traders are singing songs while buying stocks at the ask. Investors are drinking Fed wine and ECB champagne throwing money at equities without worry or concern about price. Timmy Trader, high on the BOJ crack, is telling everyone to "buy, buy, buy" before the train leaves the station.

The complacency is rampant in the stock market. Traders are convinced that stocks will keep moving higher, after all, the SPX crossed above the 200-day MA at 2743 today closing at 2744. Investors that do not know a moving average from shinola are touting this feat as unequivocal proof that stocks will rally higher indefinitely. Pie-eyed traders, woozy from too much PBOC rice wine, are telling senior citizens to invest their life savings in the stock market. You know what happens when everyone is on one side of the boat partying like its 1999, as Prince would say.

If the stock market tanks, what will global investors think of the central banks? For over a decade all faith and confidence is wrapped up in these corrupt institutions that perform the bidding of the wealthy class. Central bankers maintain dovishness to pump stocks higher which rewards the wealthy elite that own large stock portfolios. When Fed members leave their positions and return to private life they are rewarded with lucrative speaking engagements at the investment banks. This is how the crony capitalism system operates in America. One hand washes the other for the top 20 million people in America's elite class; they are the new Gilded Age riding roughshot over the 300 million huddled masses.

The drop should be about 40 to 100 handles on the SPX when it begins the retreat any hour any day ahead. If the selling becomes nasty and equities drop like stones, will confidence be shaken in the central banks? Will global investors realize these mere mortals have no idea what they are doing? The Fed and others are simply making it up as they go along. The game is over if confidence is lost in the central bankers. If the SPX comes down to test the 2350 low, and fails, would that super panic the central banks? And super panic investors? The Federal Reserve, ECB, BOJ, PBOC and others begin the year with dovishness out the wazoo; how would it be viewed if stocks fall despite this central banker largess? It would signal that the end game is here. Do you think this scenario will happen during the weeks and months ahead? A tradeable bottom in the stock market will not occur until the CPC moves above 1.20. 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.