New all time highs for the NASDAQ Composite Index, for the Dow Jones Industrial Average and for the Standard and Poor’s 500! I’ve got these 3, just off the top of my head, giving off “too hot” vibes: the NASDAQ new highs/new lows ratio, the NYSE advance/decline index and the CBOE put/call ratio. Take the NASDAQ new highs to new lows ratio, for example. Here’s the CBOE put/call ratio:CBOE put/call ratio, monthly 12 26 19 Stockcharts.comInvestors purchase put options when they believe the market is about to head down — or as protection for the possibility of that prospect. Right now, the CBOE put/call index is showing the lowest ratio of puts bought to calls bought since November, 2018 — right before the market tanked in the following month.

Source: Forbes December 27, 2019 03:45 UTC