The pace of play has certainly slowed down ever since the monthly model went into a sell on the VIX index. The VIX is currently at 15.93 and is looking to bounce from current levels. The look is of the VIX is one of working its way to all time lows of 9.31. The stock market is literally doing the best job I have ever seen of self correction. It is pulling shorts in and spitting them out.
It really is a tremendous testament to the power of the secular move higher in stocks and the economy. The Economic recovery is coming along nicely and the break out in the NOB spread is telling us to look for further improvement in the economic and unemployment data. The back drop is firmly secure and we continue to trend higher.
The investment environment has changed considerably since the bottom in 2008. The world has gone from massive fear to one of optimism and new confidence. The public has once again started buying equities. The exodus from the bond market is now in full force.
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