CPC Put/Cal Ratio Daily Chart; Rampant Complacency Signals Significant Stock Market Top At Hand

A couple weeks ago, Keystone showed that first spike lower on the put/call ratio signaling rampant complacency and now a second move into this extreme bullish euphoria zone occurs. Typically, a top would have already occurred for the stock market and the downside would be in progress but these are not typical markets. Stocks remain buoyant as the Federal Reserve continues cooing dovishly promising future rate cuts as far as the eye can see and at the same time there is new AI (Absolute Insanity) hype news hitting the wires each day.

In general, you want to buy stocks when there is panic and fear (1.20+) and people running from the stock market with their hair on fire. That behavior marks a bottom. Conversely, like now, when there is rampant complacency and fearlessness (-0.80), the most bullish euphoria in 2-1/2 years, you want to sell stocks.

The fuse is lit on the ticking time bomb that is the US stock market. It's a shame that Grandma Juanita took her entire life savings, that she kept in a Maxwell House coffee can under her bed, to a broker and told him to buy NVDA stock. She expects to be filthy rich this time next year like all the talking heads on television told her. Every top needs the bag holders. Sucka's.

Take your profits folks. The US stock market is topping out and about to start a multi-week down move. If you keep holding on to your longs, Ka-Boom; it may be too late. 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.