When things get this crazy, one has to go by the seat of one's pants. According to Gene Epstein in this week's Barron's, the US jobless rate is not 7.6%, it's actually 7.9%. Since the 2009 lows, the nation's Gross National Product has swelled by $1.3 trillion, but the stock market has gained $12 trillion in value. Meanwhile, the VIX has dropped to a multi-month low under 12, meaning that option traders see low volatility in coming months. And I'm thinking, after the calm comes the storm.
For all the above reasons plus a churning in my stomach, I'm exiting this market (good-bye DIAs), and I suggest that maybe my subscribers might do the same. But it's up to the individual. You might stick around with a mental stop loss on your DIAs if they break below 154.
The drivers of this market are the money managers who are playing the upside for ... Log in or subscribe to continue reading.
Premium Content Notification
A subscription is necessary to access premium content.
Please use the button below to subscribe in order to access all premium articles