If there’s one thing about the market that is bothering me is how bullish everyone is (including myself). Seems like everything feels the risk on trade is off and it’s back to business as usual on the markets. ¬†And when I say back to business I mean 3 steps up 1 step down as the markets do have a bullish bias in general. But given all the negative macro news: money printing, European trainwreck, Obamacare, need I go on? There still are a lot of events that could derail this market in the short term.

Vix without the actual Vix chart signaling a return to normal volatility. The blue line is the 10EMA of the Vix and is a smoother chart (actually removing the volatility).

CPCE has a way to go before I would say we’re at complacent levels that one should be concerned with.

Vix with the actual Vix. When it goes between 2 red lines the market often corrects. Maybe a 3-4 days of rest on the markets would do wonders to alleve the overbought nature of the markets and give some decent setups to recent winners. Three days in a row the Nasdaq closed at the day’s high. That’s either an extremely bullish signal or a signal that you’ve just got suckered into a fool’s rally.

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