Excessive Optimism Can Be a Warning Sign
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The put/call ratio for the S&P 500 is dropping, signaling growing market optimism.
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With positive headlines about trade, inflation, and employment flooding in, optimism is exploding across the options market.
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A sharp decline in the put/call ratio = "Most investors think everything is fine."
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But the more relaxed the sentiment, the more vulnerable the market becomes to unexpected shocks.
➡️ “This isn’t a signal just yet, but it’s a risky condition.”
Now is not the time to let your guard down — caution is still essential.
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The Fear & Greed Index is at 69, approaching Extreme Greed territory.
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A market flooded with optimism is often a warning sign in itself.
📉 No asset goes up forever.
Even in a bull market, technical corrections to cool off overheated momentum are inevitable.
