Top 8 Reasons To Be Nervous About Stocks At These Levels

As if we didn’t already have enough to worry about: Here's this week's list of the Top-8 reasons why traders should be a little nervous about stocks at these levels.

1. Low volume: Lowest four volume days of the year for the S&P 500 have occurred in the past 10 trading days.
2. Low VIX: Even with the slight bump up recently, VIX is still trading below 12 and at lowest levels since 2007 (except a brief drop in March 2013).
3. 10 days in a row up: S&P E-Mini Futures have closed higher 10 days in a row.
4. 396 days above 200 Day Moving Average: Second longest streak in past 20 years. Record is 525 days in 1998.
5. Tight credit spreads: Junk bond yields to Treasuries are approaching historic lows. There is hardly any reward for much greater risk.
6. GDP negative last quarter: And without the Obamacare bump, this likely would've been even worse.
7. QE being wound down: Free money party nearer the end than beginning.
8. Complacency: "So what?" traders exclaim after reading the first 7 reasons.

Please share this article