CPC and CPCE Put/Call Ratios Daily Charts; Record Levels of Panic, Fear, Doom and Gloom Signaling a Stock Market Bottom

Buy, Mortimer, buy! Whazzaat? Whoozzit? Everybody and his brother are short the US stock market including the Uber guy, shoeshine boy, taxi cab driver and doorman. The local ladies quilting club just went 300% short the stock market with their life's savings. Trader Timmy, known as a good fade, just mortgaged his house so he could short more stock.

The CPCE put/call ratio is in the stratosphere. Put-buying is crushing call-buying because everyone is universally 100% bearish expecting the stock market to collapse from here. You know what is going to happen. Yes, it will rally.

It is on a silver platter for longs. Do you want to try running towards the burning building for once instead of running away from it? Do you have the guts? Will you get burned to a cinder if you go long instead of following the entire Wall Street crowd that is universally short and negative? These are the times that separate the men from the boys.

Joking aside, those two big spikes on the CPC in 2019 and 2020 are interesting panic bottoms. Like now, it was the end of the world. Back then, Trader Timmy was so distraught at losing his client's money that he jumped out the window but fortunately, he was on the ground floor. During January 2019 through April 2019, call it 5 months, the SPX rallied 6 hundo points.

For the more recent spike of panic and fear you see on the CPC chart, that signaled the start of a 1,200 point rally in the S&P 500 from March through September 2020 call it 6 months.

What do you think is going to happen going forward? If you are too stupid to think independently and understand the concept above to its core, understand that it is wise to exit the shorts you have on because a big rally is likely ready to begin for the US stock market. If it runs for a few weeks, you have to figure it would be good for at least one to three hundo points of upside, or more, in the SPX. The holidays are in the mix and the low volume days may create some wild excitement as Baby New Year arrives. 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 10:45 AM EST: Stocks are tanking today with the SPX at 3809. Bears are salivating and high-fiving each other convinced that equities have nowhere to go but lower and lower. The GDP data is hotter than expected indicating more inflation likely. In addition, Appaloosa's David Tepper says he is setting up short. There are lots of money managers that listen to Tepper so bloop, down stocks go on the negative news. Semiconductor earnings disappoint so the chips are down, literally and figuratively. The chips created yesterday's buoyancy in the stock market and what the semi's giveth, they taketh away. Semi's and tech stocks lead the way lower. The SOX collapses more than -5%. The bears have confirmation that doom and gloom will continue forever. Will it? You're watching the jello move around the plate on low volume holiday days. There will likely be a lot of choppy slop the next few days. A great day to unload shorts. Have you or are your pressing your shorts? Keybot the Quant remains short. Today is the bearish Tepper, chips collapse, higher GDP, Tesla discount on cars, day, sinking stocks in a likely crescendo wash-out.