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ProShares UltraShort S&P500 Message Board

  • keybotthequant keybotthequant Jan 10, 2013 7:50 PM Flag

    CPC Put/Call Ratio Chart Signals Significant Market Top Due to Compacency

    Here is an update for the CPC put/call. Above 1.20 is where going long the markets is a smart move. When the CPC drops under 0.80 and 0.70, short is the side to be on. The red circles show significant market tops occurring due to complacency. The green circles are market bottoms identified by panic and fear. After traders were drunk on bullish euphoria in the springtime last year, after the large upside market rally to begin the year, the May selloff brought everyone down to earth. The June bottom was easily identified by the fear and panic in the markets. The September top was easy to spot since the complacency reached ridiculous levels again, so the markets sold off October into mid-November when the 1.20 print signaled the market bottom. Since then the markets float higher but the CPC now shows over-the-top complacency in the 0.7's. Traders expect markets to go up without any fear or worry. On the floor today, one trader was lounging in a beach chair all day long and another walked around in sandals already planning a vacation trip, completely unconcerned about markets since they will go up forever here on out.

    The projection is for markets to roll over and sell off at any time, tomorrow, next week or in the very near-term future, it's coming. A tradeable market bottom that provides an attractive entry for long term long positions does not appear until the CPC moves above 1.20. Keep building a long shopping list of tickers you like and then wait for 1.20, when the panic is in the streets, to pull the trigger.

    For the CPC put/call chart use search box above for Keystone Speculator

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