VIX Shows Little Fear

April 1999 first month ever to gain 1,000 Dow points

The market simply refuses to take any sell signal, even around negative cycles, and continues upside. VIX is showing little fear, but my indicators remain up long term. If futures are at extremes do not chase a trade.

Short term, at the 50/50% level, remains a consolidation to a variety of potential levels, outlined in our new Dow projections. We watch Gold carefully around this, and see sell signals around its volatility, and know that how the Euro holds, how the Greek debt further unfolds, and how earnings and data reflect the mood.
From traveling the U.S. recently I can say the economy is strong, that people are spending, that there are no signs of "serious recession" everywhere. We still abound in false facts, we all still know that lobbyists and corporations truly run the country, but the fall off the cliff has been avoided.
Our short term thoughts are a potential consolidation to surprise the market, led by a slow and steady increase in the 11,000's. We do not see growth in 2010 of any real merit in the market, and have to learn to catch the stock that is breaking out, as we've recently done in our great option trades at www.bluechipoptions.com

Index option trading takes serious study, to "learn an option" (such as our call this week), and how it moves. We don't always "fall in love with an option," but we try to recognize where things will be around the pivot point and support and resistance.