Stephen Eubanks: Here's When You're Really Going to Start to See Strength in This Market

Choice quotes from our weekly discussion with Stephen Eubanks, founder and principal of Eubiquity Capital and MrTopStep. "There haven't really been any [headlines] since we last spoke on Friday, when S&P downgraded multiple countries' AAA ratings. Go ahead and downgrade them. They go straight up." "The market is always trying to exhaust you in terms of the way you think. There are a lot of guys who weren't prepared for this [rally], and now they are paying the price for it." "You've got indicators on the technical side saying we're a bit overextended here and need a pullback. There was a time two years ago when the market went up 31 trading days without a 1 percent pullback." "The higher we go, the harder we fall. What's healthy is having a back-and-fill." "When expiration is over, that's really when you know who has been skinny-dipping in the market, and I think a lot of people don't have their Speedos on." "We were just at record high short interest two months ago and now we're at record low short interest." "Without high short interest to create future demand for the stocks, there could be some air pockets along the way below us, but again, we have all rising trends." "Today, on reactionary highs, the NYSE didn't even trade 850 million shares. That should have been 1.7 to 2 billion shares." "I don't really like the volume conversation because it's real prices regardless of the volume. You can take prices to the bank; you can't take volume to the bank." "Today, the VIX closed under $20 for the first time in a year. So, there's a lot of complacency out there. Stocks do go down." "You want to embrace volatility. At some point, the volatility is going to go away. We have all the headline risk; we just haven't had a headline yet." "Earnings disappointments are really going to be the overhang in the market. Once earnings are over in another week, then you're really going to start to see the strength in the market." Find us on Twitter @BenzingaRadio