PCC & QQQ: PUT TO CALL RATIO / MARKET BOTTOM NEARING???
DESCRIPTION: In the chart above I have included an overlapping analysis of PCC which is a PUT TO CALL RATIO INDICATOR & QQQ a LEADING INDEX in the OVERALL MARKET.
POINTS:
1. A PUT TO CALL RATIO LEVEL OF 2:1 HAS ALWAYS BEEN INDICATIVE THAT A MARKET BOTTOM IS NEARING OR IN.
2. MACD is has officially shown a complete flip in buying to selling pressure by touching +0.1 and falling closer to -0.05.
3. RSI is showing a distinct decline seen in past market bottoms.
IMO: With an overabundance of overall bearish market sentiment and spikes being seen in PUT TO CALL RATIO INDICATORS FOR EQUITIES & INDICES it should be safe to bet that market bottoms occur when the majority of retail investors are buying PUTS as MARKET MAKERS would not allow their CONTRACTS to EXPIRE IN THE MONEY.
SCENARIO: Continuous spikes to 2 POINTS for PCC and above is most certainly a sign that a MARKET BOTTOM is in the making already.
FULL CHART LINK: www.tradingview.com/chart/UUCv2fGk/
PCC
QQQ
POINTS:
1. A PUT TO CALL RATIO LEVEL OF 2:1 HAS ALWAYS BEEN INDICATIVE THAT A MARKET BOTTOM IS NEARING OR IN.
2. MACD is has officially shown a complete flip in buying to selling pressure by touching +0.1 and falling closer to -0.05.
3. RSI is showing a distinct decline seen in past market bottoms.
IMO: With an overabundance of overall bearish market sentiment and spikes being seen in PUT TO CALL RATIO INDICATORS FOR EQUITIES & INDICES it should be safe to bet that market bottoms occur when the majority of retail investors are buying PUTS as MARKET MAKERS would not allow their CONTRACTS to EXPIRE IN THE MONEY.
SCENARIO: Continuous spikes to 2 POINTS for PCC and above is most certainly a sign that a MARKET BOTTOM is in the making already.
FULL CHART LINK: www.tradingview.com/chart/UUCv2fGk/
PCC
QQQ
