CPC and CPCE Put/Call Ratios and SPX S&P 500 Daily Charts

The BPSPX, SPXA150R, CPC and CPCE put/call ratios, and most importantly, positive divergence on the SPX hourly and daily charts, announce a stock market bottom at hand. Keystone covered about 80% of the index shorts and flipped those positions long at the opening bell yesterday. The charts could have been posted but there is no point to it since the blogs are not supported well enough considering the tens of thousands viewers each day.

Remember in the summertime, Keystone told you the market participants were far too fearless and complacent and the low put/calls signal a top at hand? The television pundits said the opposite opining daily on how everyone was fearful. Wrong. The low put/call ratios are plain as day (red circles) verifying the complacency and signaling a stock market top. Everyone was wrong except Keystone.

So the stock market tops-out and the CPC and CPCE put/call ratios recoil back to the upside. Whoosh. That did not take long to descend from happy fearlessness and complacency into dark bloodshed, panic and fear. Humans are an emotional bunch.

The high put/call's signal panic and fear and time to buy. You want to typically run towards the burning building while everyone else is running away with their hair on fire. The put/calls are very erratic which is atypical behavior and verifies the craziness in markets these days. In mid-August, the stock market goes from panic and fear, back to complacency, then back to fear and panic in only a few days time. That represents traders running around like chickens with their heads chopped off.

The matching tops on the CPCE above 1.10, when 0.80 and higher typically signals a potential bottom in stocks, and the spike to 1.60 on the CPC, well above the 1.20 level that typically signals a potential bottom in stocks, told you, along with other metrics, that it was a good time to pick a bottom. And it is a very nice bottom.

The next step is simply to wait and watch for the put/calls to drop to new lows and signal a top again. For now, traders have been panicking and feeling fear for the last couple months. Investors do not want to hold stocks now because they are worried so, if the trade looks good either fundamentally and/or technically, take the shares off their hands.

Putting the happy talk aside, note that the SPX weekly chart remains weak and bleak. Thus, the relief rally will likely be short-lived (a few days maybe week or two). The SPX weekly chart will reexert its negativity and it wants lower lows with the SPX price on the weekly basis going forward.

Congress is a mess with the House leaderless giving Speaker McCarthy the boot. There may be a vote mid-week for a new speaker and if that fails, fear and panic may return in force since the House will be a complete mess.

The House republicans display incompetence when in the last election, aside from the abortion issue, the 'glaring theme of those elected was competence'. Americans are sick of the republocrat and demopublican filth and scum and simply want to 'elect responsible capable competent managers to office'. It is not rocket science, and Keystone knows rocket science.

The Jordan character wants the House speaker job but he is Trump's boot-licker and puppet and comically, the orange head provides an endorsement for Jordan; it is the kiss of death. Jordan should have told Trump to keep his mouth shut. The endorsement guarantees that not one single democrat will vote for Jordan.

In addition, it sets up the moderate republicans in the House to be little b*tches and buckle under to the whims of King Donnie and the right wing of the party, and vote for Jordan. That is probably not going to happen. The interim speaker Patrick McHenry will likely end up the speaker until the November 2024 election. Channeling Patrick Henry, Patrick McHenry will proclaim, "Give me the House speakership, or give me death!"

It is obnoxious inconsequential political theater since the United States is already gonzo; you're watching the demise of America's corrupt crony capitalism system and living world history in real-time. 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.