There is still plenty of confusion in the air. Since the 'trading dynamic' post, the market kept rising, but my expectation of complacency was/is not realized. This only adds to my confusion. It can be viewed in a few ways:
1. As an indicator. (I pointed this out the other day, but I have seen multiple media reports on this symptom after I posted about it. This now makes me wonder as to its affect. When too many people 'know something' that 'thing' no longer matters. The masses will contaminate the indicator as they pile-in, and render it worthless.)
2. Wall of worry. People have seen the chatter, and are buying up puts instead of selling shares just to be hedged. But again, with no real systemic risk, and the indicator getting contaminated this is a reasonable assumption.
As I pointed out the last few days, some names have come down and merit entry. I did enter names last week, but my sense of caution did not elude me either. Although it looks like we keep climbing this wall-of-worry, I added to my market protection as I added to my positions.
I will use this example again, many will think AAPL seems rich, at this time, at 365-370. But as AAPL approaches the 340s, it is a steal considering what they will earn next quarter.