CPC Put/Call Ratio Daily Chart

The stock market top arrives as per the rampant complacency and fearlessness. Stocks were ready to top out in late June but the festivities were delayed a couple-three weeks due to the Independence Day holiday, Pope Powell flapping his dovish wings (rate cuts coming), happy inflation data and Jensen waving a black box in the air every 10 minutes proclaiming that AI is the Second Coming.

Typically, you do not want to nibble on longs until the CPC moves higher towards and above 1.20 when panic and fear sets-in. That level tells you that people are selling their stocks in a panic, throwing the baby out with the bathwater, swearing they will never buy a stock again. Of course, that is when you want to buy. The prior three peaks above the green line were tradable bottoms in the stock market.

You knew the stock market was topping-out due to the rampant complacency and negative divergence on the SPX charts; nothing to it. Even as a few days ago, there were jackasses on television and the internet proclaiming that everyone was pessimistic so stocks had a long way to rally. Dolts. All these idiots had to do was look at the charts to verify the sentiment. 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.