Hello,
Here I've analyzed the PCCE (Put/Call Ratio Equities) in the monthly time frame.
Something extremely concerning is taking place for the coming months. We are close to hitting .45 on the put/call ratio which is in extremely overbought territory. What this means is when we are in this level, all of the buying power in the market is already in the market. We need to blow off steam before we can continue higher. Typically we can expect extreme volatility in the coming months after the ratio gets to this level. I've marked out historic times where price got to this level to add clarity to the chart.
We've already sold off 10% in September when we almost touched. Now we are lower and can possibly touch .45 this month, if that does. Cash may gain value.
PCCE
Here I've analyzed the PCCE (Put/Call Ratio Equities) in the monthly time frame.
Something extremely concerning is taking place for the coming months. We are close to hitting .45 on the put/call ratio which is in extremely overbought territory. What this means is when we are in this level, all of the buying power in the market is already in the market. We need to blow off steam before we can continue higher. Typically we can expect extreme volatility in the coming months after the ratio gets to this level. I've marked out historic times where price got to this level to add clarity to the chart.
We've already sold off 10% in September when we almost touched. Now we are lower and can possibly touch .45 this month, if that does. Cash may gain value.
PCCE