Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
A couple of short term indicators such as the one below are beginning to flag a relatively extreme overbought condition. Mr. Tepper was back on TV today (Bloomberg) and was ever more bullish as well, and people now are under the belief central banks are omnipotent as one after the other will funnel money into the system (in a competitive manner) and they have our back. Blah blah blah. We’ll see how Mr. DeMark does as his S&P target is a few points away. I am also starting to see “dumb” stuff like airlines running while oil is running, telling me people are buying without logic at this time.
You can also see complacency in items like this:
The number of active “put” options protecting against declines in the S&P 500 exchange-traded fund (SPY), which tracks the benchmark Standard & Poor’s 500-stock index, dropped to just 8.9 million Tuesday–the lowest level since last January–as the ETF rose to a fresh five-year high.
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