Market Sentiment: Equity Put/Call ratio 50DMA hits all time low

Back in April 2010, just before the biggest correction of the past couple of years, I published a historical chart of the Equity Put Call Ratio (20 day moving average) in order to show that we were about to have a serious correction.

Well, we are now way past this period, and bullishness seems to have reached such historical extremes that would almost dwarf the internet bubble and the peak of markets at the top of the credit bubble in 2007. In order to show that, I have charted a 50 Day Moving Average, in order to show that this extreme bullishness has been going on for quite some time.

Click on the chart for bigger view

I think it's fair to say that nobody had forecast such an extreme level of bullishness would be reached not only in March 2009 at the bottom, but even in April 2010,  when the market had already rallied for almost a whole year without any disruption.

Moreover, it confirms that greed is limitless and that markets have no memory.

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