Risk On Attitude has Created a No-Fear Market Trading Atmosphere

Intraday sell-offs aren’t even being taken serious by traders any more. Before the market can drop five points on SPX, mentions of BTFD and “Buy the ‘you-know-what’ dip” begins to permeate throughout financial social media. 

You want to know why the VIX is in the 9-10 range? It is because no one is scared of this market anymore.

We are about five months into this trading year, or a shade under half-way through, and guess what? The market has only had a combined total of three trading sessions where the market finished higher (or lower) by 1%. 

Nobody is scared because the market says you don’t need to be scared until the time comes when the market drops a bombshell on your trading account and says “Get Scared!” 

Me on the other hand, well, you have to trade long, yeah, there are opportunities to the short side, but they are limited. But I am going to continue to actively manage risk, because it is when the market suddenly falls to crap that you are glad you managed the risk all along.

Below you will find my weekly list of bearish trade setups that I am watching. I don’t have a single one in my portfolio, but that doesn’t mean that I won’t have one or two before the end of the week. For now though, I am watching.