• 657 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 659 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,059 days Could Crypto Overtake Traditional Investment?
  • 1,064 days Americans Still Quitting Jobs At Record Pace
  • 1,066 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,069 days Is The Dollar Too Strong?
  • 1,069 days Big Tech Disappoints Investors on Earnings Calls
  • 1,070 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,072 days China Is Quietly Trying To Distance Itself From Russia
  • 1,072 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,076 days Crypto Investors Won Big In 2021
  • 1,076 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,077 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,079 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,080 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,083 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,084 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,084 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,086 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Stock Barometer

Stock Barometer

Stock Barometer

Stock Barometer is completely independent. We have never and will not ever accept compensation from any company whose stock we recommend. Our goal is to…

Contact Author

  1. Home
  2. Markets
  3. Other

Fear, Complacency And Greed

6/10/2014 7:37:30 AM

Good morning Traders,

3 charts for you to ponder today.

As the saying goes, bulls make money, bears make money, but pigs get slaughtered. Too much of a good thing is greed, and unlike the mantra of wall street - greed is not good. Here's what I mean:

5-Day Equity Put/Call Ratio Chart

This spike higher in call buying, is generally associated with a top. And while tops can hang around for a month or more because of the mechanics of some hedging components manipulating prices, this level of complacency is at the greed level and traders will likely face the wrath of mother market.

That being said, these type of markets do present other opportunities. For example, one of our indicators (which are available at www.stockbarometer.com) is our oil leading indicator. It's not always precise, because of it's makeup, but it's message is clear - the potential for skyrocketing prices exists.

Oil Leading Indicator Chart

So it's a good thing that we loaded up on CALL OPTIONS in our Oil Options Trader Newsletter.

What's that mean for the markets? While no one can every call a top without paying some respect to randomness, here's our trading cycle chart, which we use in developing our annual forecast:

Trading Days Cycle 2013-2015 Chart

This is the first of a cluster of dates that are due up over the next few weeks. The key to the advance remains bonds, which if they turn lower from here, can fuel a liquidity advance. This money manipulation creates imbalances in the market that will get played out eventually - either gradually or sudden - you'll only know in hindsight. But our job here remains reviewing our research and looking for these tipping points and advising you and positioning you accordingly...as we've been doing for the past 14 years!

Regards,

 

Back to homepage

Leave a comment

Leave a comment