CPC and CPCE Put/Call Ratios Daily Charts; Multi-Month Lows Verify Rampant Complacency and Euphoric Bullishness and Forecast Large Drop in Stocks Ahead

Get out of the stock market while you can. Huge shake-out coming due to the rampant complacency, and now out of control euphoric bullishness. Both the CPC and CPCE put/call ratios are at multi-month lows. Go short. All the bulls, and all the bears, expect stocks to go up forever; but they don't. In fact, when everyone is at the bull party on one side of the boat it capsizes. The bull party kicks into high gear with everyone dancing and singing Una Paloma Blanca.

The US stock market, the S&P 500, the SPX, will top-out within days, and then drop from 400 to 1,000 points in a quick few weeks. Thus, in January, the SPX may be sporting a 5 handle. Current price to start off the new trading month of December, and last month of the year, is 6850-ish. Taking away the 400 to 1,000 points places the index down at 5850-6450 in a few weeks. That will get everyone's attention.

The television and internet talking heads are universally bullish channeling Irving Fisher in 1929 that said the stock market is at a permanently high plateau. How did that work out? It is funny. Bears are as rare as hen's teeth. The recent SPX orgies occur on rate cut promises, AI hype, and holiday cheer, while ignoring and downplaying all bad news.

Further, the recent selloff is declared the shakeout everyone was waiting for so now the coast is clear. There are jackasses now calling for SPX 8K next year. What are they smoking? That must be some good ganja that makes you see things. Pass it around to everyone. Oh, you already did.

The pundits, analysts and strategist, bulls all, proclaim that at this point, the dotcom bubble top did not occur for 2 more years so there is nothing to worry about. Don't you idiots understand that the talking heads are pumping and dumping? They tell you, Joe Retail, to be the bagholding sucka while they sneak out the back door like all thieves. Are you willing to be the sucka and lose your money? All the stock market hijinks and malarky is a recipe for disaster and the short-sellers are sitting at the table ready to dine.

The major topping behavior at 6500-6900 continues for 3 months. The major topping behavior at 6200-6900 continues for 5 months. The SPX all-time high is 6920.34 on 10/29/25 and the all-time closing high is 6890.89 on 10/28/25. The SPX only needs 50 points to be at record highs so do not rule out a pop of a hundo or so points before the exact top in the days ahead. The SPX 2-hour chart will help with the timing.

The Fed rate cut is next Wednesday, 8 trading days away, so bulls are going to try and keep equities elevated in the week ahead, since that will carry them into the Fed decision day (stocks are higher 80% of the time the couple days leading into a Fed meeting). It will be interesting to see if the selloff begins before the Fed meeting on 12/9/25 and 12/10/25, or, if the Fed decision may cause the stock market to print the top and then nosedive off the cliff.

The Keybot the Quant trading robot is long right now so it will be very telling when the quant flips short.

She is going to be a doozy. Plan accordingly. Ditch the longs or at least take on a lot of protection via puts or inverse ETF's. You can scale-in to the inverse ETF's over the coming days and want to be loaded up short within, say, the next couple weeks. If you hold on to all your longs in your stock portfolio, you are going to get hosed bigtime. Cue Barry. Eve of Destruction. Human respect is disintegrating. 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.