CPC and CPCE Put/Call Ratios Daily Charts

The CPC and CPCE put/call ratios do not yet signal a tradeable bottom in play for the stock market. However, everybody and his bro are running towards the Big Board with suitcases full of cash ready to go double-leveraged long. S&P futures are up over +40 points about 20 minutes before the opening bell for the regular Tuesday trading session. Traders are singing songs while sipping PBOC rice wine and buying stocks without a care in the world. The central bankers are the market.

It has been 11 years of nonstop central banker intervention at the hint of any rough seas ahead for stocks. The central bankers always protect their wealthy money masters, that own large blocks of stocks, since they will be rewarded for their loyalty with lucrative speaking engagements at the Wall Street investment banks once they leave public life. Such is the crooked crony capitalism system.

Anyhoo, the put/call ratios continue ticking off low numbers indicating ongoing complacency and fearlessness in markets. Aunt Edna, who is typically a reserved blue-haired gal, is boasting that she placed her entire life savings in Amazon stock a day ago and is guaranteed an easy life here on out. The lust for stocks this morning is clear evidence that the masses remain hypnotized by the stock market rally. TSLA is on its way to 900+. It is a central banker-induced fantasyland with parabolic stocks growing non-stop to the sky.

A tradeable bottom will not appear until the CPC moves above 1.20 and the CPCE above 0.80. All those folks, and possibly you, that are running in to buy stocks this morning are likely going to be disappointed. The euphoria today will likely take the put/calls even lower. The expectation would be for any relief rally to peter out again and for lower lows in the stock market to come thereafter.

If you have a list of longs that you want to buy, don't. Wait until at least one of the above charts move above the green line. Then, you can start to nibble on the longs you like. Once both put/calls move above the green line, when traders and investors are screaming bloody murder and jumping from windows, and the blood is flowing in the streets, you can buy more and buy with confidence, as others run by you with their hair on fire.

The stock market may be sliding into a messy sideways choppy slop pattern. Both bulls and bears are chewed up in whipsaw markets. The bulls will chase the upside only to see a quick reversal and have their faces ripped off. Then the bears are emboldened shorting the market only to see a quick reversal to the upside and then see their heads on a platter. Then the bulls chase the upside..... you get the idea ...... rinse and repeat. 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.

Note Added 11:07 AM EST: The bulls came to play pushing the SPX 50 big points higher, +1.5%, to 3300. Traders are drunk as skunks off PBOC rice wine and Fed whiskey, dancing jigs of joy while buying stocks with reckless abandon. Timmy Trader is placing clients money into a 5x quintuple-leveraged long ETN. Volatility remain elevated which causes the bears to keep smiling and looks of worry on the bull's faces. If the VIX remains above 13.93, the rally will fizzle this week and roll back over to the downside. If the VIX drops below 13.93, the rally is the real deal and the joy and euphoria continues. The VIX is at 16.05.

Note Added Wednesday Morning, 2/5/20, at 6:13 AM EST: The CPC is at 0.82 and the CPCE collapses to 0.46. Get out of your longs and play the short side.