Market Thought... reality doesn't bite

Things are good. That is not a bad thing. People just have to accept it. Regardless, a healthy skepticism is not a bad thing either.

My trigger for protection was this chart, with the VIX nearing the lowest horizontal blue line.

We saw it once about two weeks back, and I got cautious. But we are just chilling for the time being.

With earnings coming on line next week for the cream-of-the-crop, I am very hard pressed to be negative. When I see companies like AXP, IBM, and many more trading below already depressed trailing PEs (see 'forward PE' link, under Links), I can not be too bearish, even with relatively over extended technical positions.

Adding to the not so bearish market thesis is the 10yr yield. It is sitting on a light support, and near stronger SMA support.

The market seems fairly stable, around its 14SMA, and if it breaks, there are multiple strong supports that most likely will be tested. Considering the last time we saw a real correction was a month ago.

Some chatter that was highlighted that may facilitate market short-term weakness are: 1. EU debt and 2. sell the news on AAPL

As for #1, the EU basically told the world they will not let the EU fail. They are doing their version of printing money, and they will do what it takes to maintain relative stability. (aka, not a real market threat anymore.)

AAPL will most likely sell the news tomorrow. Only because the chatter throughout the weekend was so strong, the real news was being priced today. But the selling on the news will be a buying opportunity. (I will be looking to re-enter in the mid 330s, ideally around 336.)