The Dow Transports hit a lifetime high today (see, that little sell-off that happened earlier this month – – didn’t mean a thing). The NASDAQ is near its highest level since the Internet bubble. The VIX has lost over half its value in just a couple of weeks.
But in spite of all this, the high-yield market seems to have stalled out. Yes, it had a big bounce from October 15th, just like everything else, but it doesn’t seem as, shall we say, irrationally exuberant as everything else.
Incidentally, I’m going to be on the quiet side until tomorrow afternoon, because the uncertainty around the FOMC announcements makes me hesitant to get aggressive (or even offer up much in the way of ideas). Fear not – – I’ll be much more prolific later. We have an enemy, and she is planning her next move. We need to know what that move is before we respond.