The CPC put/call ratio has been bottoming in the complacency range over the last month. Traders and investors are buying stocks even if they say they are not. They are afraid of missing the bullish boat, and they want to protect some positions, so they are buying calls on the stock market with both fists.
Traders believe stocks are heading higher but the complacency says a pullback is more likely to give people a chance to get their heads screwed on right again. A pullback in stocks would jive with the golden cross that just occurred on the SPX daily chart since that pattern would expect a short pullback to test the golden cross.
The SPX is rallying today up 35 points to 4125. It looks like wine and roses, and the atmosphere is calm, but there is likely a pullback on tap for a few days. You do not want to buy stocks until the CPC moves above 1.20 and you know that fear and panic is at hand. The CPCE is displaying the same behavior. 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 Sunday, 2/19/23: The CPC finishes last week at 1.03 remaining in complacency for this year thus far. Will she pop in the days ahead ushering-in the panic and fear?
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