Option traders are flocking towards call options, as the put/call ratio has dropped to 0.1. This means that there are 10 call options traded for every put option. A contrarian interpretation of this data points to even lower VIX readings, but this is not a contrarian indicator.... >> READ MORE...

Gold just saw its biggest one-day gain of the year. At the same time the S&P 500 climbed to yet another 1-year high. Since 2009, this constellation happened three times, and led to short-term S&P 500 weakness every time.... >> READ MORE...

Traders have been itching to buy the VIX. However, the VIX has frustrated anyone impatient enough to buy bullish VIX bets … so far at least. Here is why the VIX wasn’t ready to rally yet, and why this is about to change.... >> READ MORE...

Last week the CBOE Equity Put/Call ratio slipped as low as 0.43, the lowest level since January 2011. Similar readings in April 2010 and April 2012 led to nasty sell offs? But something is different this time.... >> READ MORE...

Buying climaxes are said to be a sign of distribution, indicating that stocks are moving from strong to weak hands. As such, buying climaxes often foreshadow trouble. What does the recent surge of buying climaxes mean?... >> READ MORE...

The Russell 2000 has been taking it on the chin: It’s been the scapegoat for the April sell off and, unlike other indexes, wasn’t able to report new all-time highs in June. Will the Russell 2000 catch up or lead the broad indexes lower?... >> READ MORE...

To say that this QE bull market is persistent would be an understatement. Stocks have rolled over bearish setups again and again. In fact, such bearish forecasts, promoted by the media, are a key reason why the bull is still alive.... >> READ MORE...

At the beginning of every year I put together a full year S&P 500 forecast. This is unusual in the financial industry, because a detailed, written market forecast leaves no room for excuses. Here’s how the 2014 S&P 500 forecast has done so far.... >> READ MORE...

The ‘Fed fund rate indicator’ is one of the few data points that suggested an S&P 500 spike a month ago. Here’s another look at the Fed fund rate and what the accompanying indicator says is next for the S&P 500.... >> READ MORE...

The VIX closed at an 88-month low today. Many have already gotten burnt betting on higher VIX readings, and many more are itching to place their bet. How much lower can the VIX go? That’s probably not the most important issue to worry about.... >> READ MORE...