Market Overview

Top 8 Reasons To Be A Little Nervous About Stocks At These Levels

Share:
Top 8 Reasons To Be A Little Nervous About Stocks At These Levels
Related SPY
Trump's Commerce Secretary Nominee Explains How U.S. Gets Screwed In Trade
Dissecting The Economy Trump Is Inheriting
Follow This Piece Of Economic Data To Avoid Bear Markets (Seeking Alpha)

Everyone seems to have a Top 10 list, so here's this week's Top 8 reasons why traders be a little nervous about stocks at these levels.

1. Low volume: Lowest four volume days of the year for the S&P 500 (NYSE: SPY) have occurred in the past 10 trading days.

2. Low VIX: Even with the slight bump up recently, VIX 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 in 1998.

5. Tight credit spreads: Junk bond yields to Treasuries approaching historic lows...not much reward for 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 say after reading the first 7 reasons.

Posted-In: Junk Bond Yields S&P E-Mini Futures Treasuries VIXTrading Ideas General Best of Benzinga

 

Related Articles (SPY)

View Comments and Join the Discussion!