What to buy?

About the only thing cheap these days is insurance– whether you look at options VIX or bank CDS levels. The former  cracked the 20′ s and the mid-teen lows of yesteryear beckon.  Buying low and selling high does apply to all things does it not!

Did nibble on IWM puts at the close. Several people are calling for some caution/trading tops (here and here), others are long and have unwound hedges (here) still others calling for a pause (here).   Tom De Mark says 1342 this week and then a fall (here). And a UBS analyst (here). All this variation amidst near unanimity that the domestic economy is recovering (is it really?). The earnings beats seem to come after dramatically lowered expectations and do not convince me.   Weeks ago, I had a post on the BRICs (here) and those positions are slowly shrinking to a core holding.  And so it goes.

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