Investors are strongly advised to exercise caution in the current market conditions, as multiple indicators signal potential risks. The low VIX (Volatility Index) implies a degree of market complacency, while the Mclean Summation Index is within a specific range in July 2023, suggesting a need for close monitoring. Furthermore, the NYHL (New High - New Low) Index is notably high for the year at 755, indicating increased market breadth but also potential exuberance. Compounding these concerns is the Fear Greed Index, which is nearing an extreme greed range around 71. This heightened level of investor sentiment underscores the importance of prudent risk management. To protect your assets, it is crucial to reassess risk tolerance, diversify portfolios, and stay informed about global economic conditions. Given these signals, consider consulting with financial professionals and conducting thorough research before making any significant investment decisions in this dynamically evolving financial landscape.
TRADE IDEA FROM MARK ==================== I wanted to offer a trade idea and get your feedback. It’s a small $1 iron condor spread on the IWM September quarterly’s, so it’s over in a relatively short time, but has a potential decent return. Although the IWM has been going up pretty strong the past two weeks (see chart below), I’m expecting a leveling out or lower rate of increase over the next 15 days which should keep it within the IC range. The credit is $.28, not a huge amount, but still decent for the risk. Remarks : Looks good to me. Range of IWM by 10/1 , I am expecting between 61 -58