As we head Into the January 23rd trading week the S & P 500 sits at 2270 and continues to trade in the 2260 to 2285 range. The VIX index (CBOE volatility index) is at the extremely low 11.5 level which is surprising to me since we have a new administration sitting in the Oval Office. I would think we will see more volatility with the unpredictable president Trump taking office and yet the volatility index is so low why? As student of history I can tell you this. Low volatility index levels occur at major tops and bottoms coupled with the uncertainty of new president Trump. This is a strong indicator that we are at a market top and the coming to decline will take investors buy surprise. The party is over and it's not president Trumps fault but the fault of previous administrations policy. Although when the huge melt down in stock prices occurs the blame will fall on the Trump administration. Be prepared. Purchase put options and profit from the coming collapse of stock prices. The writing is on the wall. Interest rates can only go up along with out of control deficits. Complacency about the economy during the last few weeks has been the calm before the storm. Good luck and good marketing.
The bears are on their way to Wall Street and will be staying through the winter.
