Since March 9th, the fear index $VIX has withered away from almost 40 down to a pathetic 15. No one is afraid of anything anymore, and the President is crowing every seventeen minutes about record highs on the stock market.
My view is this kind of hubris, since the times of the Ancient Greeks, hasn’t panned out great for the speaker. Keep a close eye on all these dashed red lines.
I would also note that the Russell 2000, in spite of carving out new highs on virtually a daily basis, is hugging its trendline like a rat on a bobbing broken yardarm in the middle of the Pacific, and it would be all too easy for this thing to go Felix Baumgartner predicted on just about any news.
The Dow Industrials has been the most resolute in its bullishness, crossing the 53,000 level for the first time in history.
I trimmed exposure on Monday from 140% to 110%, principally by way of a couple crypto positions and an ETF, but I remain fully exposed with 39 shorts. I would add that the President’s sneering put-down of short sellers on Monday was all it took for me to load up on SPY $752 puts just before the closing bell. They expire on Wednesday. We’ll see how my hate trade works out.
