PRE MARKET

Markets beyond overbought. Markets beyond stretched and extended. Retail investors plowing in at numbers haven’t ever seen. Valuations upper end of historical levels. Sentiment off the charts bullish.  The good news is that getting this overbought tells you how strong things have been. We just worry about climactic action as it is great while it goes up but very painful when it goes down. Not sure we are climactic just yet…

 Also, notice how VIX is off lows and basing now. A break to the upside means market will start reverting to the norm.
To repeat….stretched and extended. Eventually, things will return to norms which means pullbacks into moving averages. Instead of guessing, just be ready.
And rates are breaking to the upside. Not sure that is a big deal with how low rates are…
A ton of earnings to come next 2 weeks.