The CBOE put-call ratio has dropped to a 20-year low of 0.39, indicating extreme bullish positioning in the US stock markets. That’s a sign of complacency among investors, as noted by market observer Holger Zschaeptiz and is widely considered a contrary indicator.
Potential correction in stocks will likely bode well for the safe-haven US dollar. The greenback recently fell to multi-month lows against the basket of major currencies on expectations for a swift global economic recovery on potential coronavirus vaccines and hopes for additional US fiscal stimulus.
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