CPCE Put/Call Ratio Daily Chart; Stock Market Complacency and Euphoria at Record 5-1/2 Year High; Significant Top At Hand

The party continues. The SPX prints another all-time record high at 3240.08 and new all-time closing high at 3239.91 on Thursday, 12/26/19. Comically, one year ago, it was the end of the world for the stock market at the Christmas Eve low. The power of the Federal Reserve, in collusion with other global central bankers, is an astounding and seemingly-unstoppable bullish force. Isn't it humorous that there are idiots that actually think fundamentals and the economic data is improving due to a sustainable recovery?

In reality, it is another few-quarter spurt of happiness brought on by obscene central banker money printing. The Fed has goosed the stock market all year long and fired-up the afterburners in Q4. The financial markets are a joke, however, it is fun to make money effortlessly, well, if you are already rich that is.

The low put/calls over the last month verify the rampant stock market complacency and lack of fear. Investors and traders are 100% convinced that stocks will always go up and if they ever do pull back it will be minor and an excellent buying opportunity. Ditto the low VIX that continues teasing an 11-handle.

Market participants have not been this bullish and euphoric in over 5 years. What do you think will happen?

Mr Foley, that lives in the shanty at the edge of town, dug up 14 coffee cans he had buried in the back yard. He converted the valuable coins inside the cans to cash and invested his entire life savings in AAPL stock. He is bragging to folks at the water cooler in the municipal building lobby that he will be swimming in vast sums of wealth by summertime. He boasts that Apple and the stock market will always rally higher. Mr Foley confidently proclaims that the Fed and other central bankers eliminated any worry that downside will ever occur in stocks again.

Every investor in the stock market currently lays in bed with moral hazard each evening; do you like laying in bed with that significant other? Life is great and wonderful, look at those blue skies and rainbows, at least for now. Considering the erratic and unstable price action over the last month, a potential flash crash has to be placed on the table. 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.