Where-Oh-Where
How do we find ourselves in this falsely re-assuring market? The markets have been up for 5 straight days, (the best part being that I anticipated this 
), but signs of strain are present.
For the second straight day the VIX is up, being oversold, as the market is up. Feels like a Champaign bottle building pressure right before the chork bursts.
The Ten Year yield potentially hitting resistance…
The market at a resistance point via the SMA…
However for the next few days, all this should not matter. The only thing that we have to know is that the recent 5 day move in the market was caused by low volume, giving the false sense of ’sentiment’ change (obviously toward the positive side).
Nothing has changed, the only thing that changed from my prediction of a drift upward in the markets was that the media outlets are giving false meaning behind the move. Do not get sucked it.
Remain cautious. If not ready to go out right bearish on the market, at the very least be PROTECTIVE. Many people are tauting the ‘January Effect’. Take a look how well the ‘Jan. Effect’ worked in 2005.
Swim carefully.
