CPCE CBOE Put/Call Ratio Daily Chart; Significant Stock Market Top At Hand

The CPCE put/call ratio continues printing lows signaling rampant complacency and bullish euphoria. It is phenomenal pricing action; very historic. That 21-day MA is flat and cannot go much lower. The top is at hand.

If you keep waiting and are unwilling to sell your longs, you will lose money. Get out of the long side and let that money sit in cash and place some on the short side if you are so inclined.

The low put/calls have been lingering since Keystone first pointed out the complacency in October/November. It is unprecedented that the fearlessness and bullish euphoria has lasted 3 months or so. This never happens. Stocks should have sold off already. A lot of new money comes into the market from the Reddit and Robinhood crowd. Also, idiots are placing their stimulus checks into the stock market on the long side. All these knuckleheads are going to lose their shirts. Every top needs bag-holdin' sucka's.

Humorously, novice traders, believing they are smart, pick ETF's such as VOO or IVV, and brag at the office water cooler that they are diversified. They are not. All these tickers will fall with the stock market.

The better trades over the coming weeks, say starting anytime between now and a week or two, as stocks top out and yields top out, and then running for a few weeks forward into and through March, would be; cash (yes, cash is a position and never forget it), short positions in equities, short ETF's, long inverse ETF's, long TLT, or short TBT. Keystone is long the inverse ETF's and shorting other ETF's but does not have a position in TLT or TBT as yet. TLT sinks on the daily chart but is set up with possie d so it should bottom anytime forward say next week. TBT is the opposite, it is set up with neggie d so it should top-out anytime forward say next week.

US markets are closed on Monday for Presidents Day and stocks are usually bullish in front of a holiday weekend. A lot can happen over the next three days. US stocks resume trading on Tuesday morning. 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.