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There are plenty of indicators out there that promise to give you an edge in timing the market. Most of them require complex calculations, multiple data points and way too much time to be practical for daily use.
But there’s one indicator I check every single morning that takes exactly 5 seconds — and it perfectly timed last Friday’s (Jan. 16) market setup right before Monday’s tariff-driven sell-off materialized.
I’m talking about the CBOE Put/Call Ratio (CPC). It’s not flashy or complicated, but it’s one of the most reliable sentiment tools I use. If you’re not checking it every morning, you’re missing information that could save you from holding positions into a reversal.
How the CPC Works and Why It Matters
The beauty of this indicator is in its simplicity. I check it right after the opening bell — around 9:35 a.m. ET — so the data has a moment to update and settle. That timing gives the most accurate snapshot of sentiment for the day, and the whole process takes about five seconds on StockCharts.com.
What I’m watching for are two key thresholds. When the CPC drops below 0.75, that’s extreme greed territory. At that point, the market is overloaded with call buyers, which usually means traders are leaning too far into bullish expectations.
That’s when it makes sense to book profits and ease off new long entries.
On the other end of the spectrum, when the reading pops above 1.0, put buyers dominate but are often nearing exhaustion. That imbalance tends to precede a snapback move, which is when I start considering increasing long exposure.
On Friday, the CPC printed 0.73 — just under that 0.75 greed threshold. That was a clean warning not to size up aggressively. And sure enough, the tariff news over the weekend sent markets lower on Monday, lining up perfectly with what sentiment had already been signaling.
Why This Indicator Consistently Times Turning Points
This tool can’t predict news — nobody has that ability. But what it can do, and does remarkably well, is time market turning points. When sentiment gets stretched to an extreme, the market often pivots shortly after.
It functions similarly to the CNN Fear and Greed Index, but the CPC is far more actionable for traders because it provides specific numerical thresholds instead of broad sentiment categories. That way you know when readings are stretched, and you know when they’re balanced or when they’re signaling a likely reversal.
The CPC also moves quickly. It’s not an indicator that keeps you sidelined for weeks. Sentiment can swing from extreme to neutral within a single session, which is why checking it daily is so important. Signals don’t linger — they flash, adjust and reset fast.
I pull the data from StockCharts.com, and I’d strongly recommend making this part of your morning routine. It’s a small habit that compounds over time. You’ll avoid overstaying extended rallies and you’ll have the confidence to step in when fear stretches too far.
This isn’t about perfection. It’s about having context. And when a 5-second check consistently helps you understand where sentiment sits and how stretched the market is, there’s no reason not to use it.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Other Traders Would Ignore a Move Like This
Most traders assume you need a massive stock move to see big profits.
But here’s the truth…
A strange quirk in how options are priced creates a rare sweet spot where even a boring 1% move on a stock can snowball into a 100% return on the right trade.
It sounds crazy. But it’s not theory, it’s math.
The “glitch” happens when Market Makers get caught mispricing contracts. They’ll never admit it publicly… but if you know how to look, you can spot it in real time.
And that’s exactly what I want to show you.
I found a way to automatically scan the entire market, flag these mispriced setups, and get in on clear, actionable trades.
The best part? These setups don’t require hours of chart analysis or guessing where the headlines will land.
They just require you to step in and execute before the window closes.
Naturally, no one can guarantee outcomes.
But if you want a shot at 100% ROI weeks from “nothing” stock moves…
You’ll Want to See This Right Away
We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading. Past performance is not indicative of future results. From 10/05/23-12/3/25 the average return per trade winners and losers was 22.38% with an average winner of 91.51% and a 61.8% win rate over a 4-day hold time.
