The SPX prints a new all-time record high at 3783.04 on Wednesday, 1/6/21, during the Capitol Hill Riot. Traders and investors remain drunk as skunks off Fed wine and continue buying stocks without a care in the world. No one is concerned because stocks will go up on non-stop Federal Reserve monetary stimulus and perpetual Congressional fiscal stimulus.
The CPCE drops to 0.39, a 3-handle again. The complacency and fearlessness is off the charts. This is when tops occur when everyone is on one side of the boat. The price action is epic. It will be fun. Do not be surprised if a flash crash occurs in the days ahead. Get out if you are long; you're lucky this turd has kept floating this long. The flush handle should be hit at anytime. S&P futures are up +22 and the VIX is at 23.38.
The Keybot the Quant algorithm is long currently and identifies VIX 25.31 as the key bull/bear line in the sand. Bears rule if the VIX pops above 25.31. Bulls are fine if volatility remains below the VIX 25.31 level. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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