Looking over a few indicators today and I’m wondering where all the bearish Put buyers are. Normally when the markets are declining people hedge their positions or are scared into buying Put options because they expect further losses. I’m not seeing much in the way of real fear from the Put/Call ratio or Equities Put/Call ratio yet, at least not the type of fear associated with any meaningful bottom, or even a tradable bottom.
I’d say the complacency is more prevalent in the $CPC as we’re well off the high levels of Sept/Oct. The VIX looks like it wants to retest it’s old highs. I’m firmly back in the bear camp after today’s close. If the market was going to follow through with last Thursday’s rally, it should have done so already. Let’s just say I was officially tricked by the market into thinking we were going to move higher on the shorter time-frame, and it was an expensive lesson.