P.S. The Market is Now Fighting the Fed

I do not expect this VIX dip under 20 to hold for very long, as The Fed remains tightening while the market is filled with tons of hope that inflation is dead and ZIRP/QE will be back in a jiffy. 

Bear market slide down a slope of hope. And now we clearly have that slope in place into the teeth of this rally in equities. While bulls will counter that we are climbing a wall of worry, I have serious doubts that The Fed will ease anytime soon, certainly not with the S&P well above 4,000, for instance. 

The summer of 2008 also had moments like these, which are easy to forget after the fact. Ultimately, though, the technicals and macro backdrop still favor lower prices. 

Finally, if commodities start to turn back higher, as it seems they continue to hint at, all Hell could break loose much sooner than folks could possibly imagine.