Risk Offff Update

Published 30 January, 2012, 03:41, CEST+1 | By the trader

As we have been pointing out over the past days. Diminishing volumes have managed “fooling” too many people into the long trade. The extended Santa Rally has once again made people nervous for missing out on the “goldilocks” scenario. With the inverted panic we have seen where people now hate theta, and the VIX has collapsed, it is time for great caution. Price action and breadth is not suggesting this is a healthy market. The Trader suggested last week that we should be trading below 1300 shortly. Let’s see how many confident investors we actually have out there. Next stop 1275. We’d love to see the market action “down there”.