It feels as if this market is sleepwalking.
We (meaning Sharpe Trade itself) have been neutral on equity, or stock prices for over two months now, as the VIX is slowly beginning to wake from a deep slumber. The market meanders along peacefully, almost blissfully unaware of the bets and the orders that are no doubt stacking up on either side of this range.
Simultaneously, we (meaning Sharpe Trade itself) have stated for about a year and a half, that while there will be no recession up until 2017 … boy … we are teetering as GDP slows to a crawl. And now, we have an uptick in recession possibilities. That means … we’ve been correct.
GDP slips lower and lower overall, the VIX is sleepy, while the indices trade within a tighter and tighter range?
There are never any predictions. But you do learn when to be careful. And it feels as if this market is sleepwalking. Tread carefully …