CPC and CPCE Put/Call Ratios Daily Charts; Significant Stock Market Top At Hand--Now

Keystone has been posting the uber low put/call ratios for the last 1-1/2 months as the Godot Top forms for the stock market. The business media adapts a lot of Keystone's ideas, concepts and charts for their own network programming. The put/calls are receiving lots of attention over the last couple days but all of you have already been following these developments.

It is taking a long time for the stock market top to tick. This behavior in the put/calls is unprecedented. In many decades of watching markets, memory cannot identify another time where it took this long for a stock market to top out after low put/call ratios. Typically, it is only a few days at most a week or two for the stock market top to print after the put/calls print such low readings.

The Federal Reserve and other global central bankers have destroyed all price discovery in markets. No one truly knows what any asset is worth anymore. Over 11 years of obscene Keynesian money printing results in stock markets at record highs with the elite privileged class enjoying massive growth in their wealth. The Fed members maintain dovish conditions to pump stocks higher to honor their wealthy masters. In turn, once officials retire from public life, the Wall Street investment banks invite these corrupt central bankers to speak at token luncheons where they are paid lucrative sums of money, a quid pro quo for their service to the elite. Such is the crony capitalism system, now on its last legs over the coming years.

The massive central bank intervention in markets have distorted all assets to nosebleed levels including stocks, bonds, real estate, vineyards, art, classic and antique cars, diamonds, gold, collectibles, etc.... Of course the day of reckoning will come when confidence will be lost in the fiat-printing central bankers and price discovery will come rushing back like a tsunami. That will be interesting to watch during the coming months and years. Obviously, it will not be pretty.

The stock market is at a significant top right now as evidenced by the uber low put/calls. Traders are drunk as skunks off Fed wine buying stocks with reckless abandon and without performing any due diligence. In addition, the SPX charts have gone into negative divergence across all chart indicators for all time periods (hour, day, week, month). Valuations are high; tech stocks (XLK) are at higher valuations than the dotcom bubble in 2000.

The 21-day MA's on the CPC and CPCE are useful stock market signals. You can clearly see the green bar calling the bottom in the stock market in March as the moving average peaked. In June, the red bar shows the 21-day bottoming telling you a stock market top is at hand, and it was, and it occurred, but Fed Chairman Powell always stands ready to ride in on his pale green horse and place his jackboot on the neck of volatility to maintain elevated markets and protect America's wealthy class. The stock market continues higher although each day displays small price moves with the overall indexes bumping sideways.

You can see on both charts the 21-day MA has bottomed again. On the CPCE chart, the moving average is already trending higher. By definition, the only way the 21-day could go lower is if the put/calls went below the moving average and there is simply no more room below. Any move lower in the put/calls would be an uber sell signal for stocks added on top of the already screaming sell signal. You know what is going to happen, perhaps it began yesterday afternoon. See if equities follow through to the downside today. S&P futures are off -16 with the VIX at 22.54 about six hours before the opening bell for the Thursday session on Wall Street. Perhaps a Black Thursday? Prepare yourself. 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 3:36 AM EST: Happy talk. S&P -12. VIX 23.88. The US and China will discuss trade via a video conference. Futures improve but interestingly, volatility runs higher. President Trump had cancelled trade discussions that were scheduled with China. Of course he did. The phase one deal with the communists had scheduled regular six-month meetings to assess its performance and to make sure each side is holding up their end of the bargain. Trump got played. The Chinese play the same game agreeing to deals then back-tracking and trying to renegotiate later. It is standard fare for the commies. China has not been buying as much ag products as promised and King Donnie does not want that to be known to the voting public especially the farmers that were screwed over the last four years. There has been farm bankruptcies in every state over the last couple years. Yesterday, AAPL prints a $2 trillion valuation with its dependence on the communists buying smartphones. This only continues because the Beijing leadership allows it to continue. China is likely still stealing technology from Apple that is why CEO Cook enjoys happy profits. As soon as the Chinese have extracted all the knowledge possible from Apple, it will be the standard procedure of then sending regulators into the Apple plants to nitpick operations. Apple's facilities will be hassled and suffer multi-day shutdowns as the commies put the screws to Cook and company and, say, in a couple years Apple will be toast in China. Same with TSLA. Tesla is banking on China buying their cars and they have the bigtime partnership that has been cheered. The commies are simply playing Musk like they play Cook and Trump. China is probably building a duplicate EV factory based on the exact Tesla technology. Keystone knows firsthand (through his international engineering experience) how the filthy Chinese communists do this with chemical plants and other industries, steel, autos, etc..., and the same playbook is followed each time. Once China has extracted all of Tesla's technology and handed it over to their own EV manufacturers, the regulators will begin hassling Tesla's plant and they will be toast in China in a couple years. People are stupid. The wealthy class in America used the rigged crony capitalism system over the last five decades to rake-in huge profits by using slave labor overseas. America's middle class was systematically eliminated from 1980 to present as the greedy wealthy class, that control politics and commerce, kept seeking more easy wealth accumulation with slave labor. Nowadays, a Vietnamese will work all day for a hotdog and a Coke. This is the real world happening behind the scenes of the present day fantasy land. Good luck to everyone. The coming years will be quite interesting. America is likely entering a transition period now of perhaps a decade, maybe more, where the crony capitalism system will morph into a capitalism/socialism system perhaps patterned after the Nordic states. Of course there will be serious social unrest, protests and riots like the 1960's. Since the wealthy class raped America for all its worth, the huddled masses will be seeking payback and retribution. 30 million Americans screwed the other 300 million. Riots will increase as folks realize if several thousand show up to protest, that will overwhelm police, especially in small cities, so concrete blocks can be thrown through windows and looting will be standard fare for the months and few years forward. People will justify the looting, which mainly destroys individual people's businesses, by saying the wealthy raped the country so now it is their turn. The wealthy elite class destroyed America over the last five decades simply to feed their greed.

Note Added 4:23 AM EST: Whoopsies, daisies. The happy talk fizzled out. Perhaps traders and investors receive a dose of reality from Keystone's ramblings above. S&P -21. VIX 24.38. Copper -2.2%. European indexes are down -1.5% and more. 

Note Added 4:26 AM EST: S&P -23. VIX 24.58. Euro 1.1823. DXY (US dollar index) 93.03.

Note Added 5:07 AM EST: Euro 1.1836. DXY, or USD, the dollar, is up to 93.03.

Note Added 5:27 AM EST: S&P -15. VIX 24.07. Euro 1.1826. DXY 93.04.