The VIX has been one of my biggest concerns over the past 48 hours. 

No doubt that the market has been rallying hard and fast over the past six trading sessions. My big concern though at this point is the Volatility Index (VIX). Over the past year, the lower 12’s, high 11’s have been the basis for every significant reversal in VIX and subsequent sell-off in equities. 

And you got it…. we are right there at the 12 area as I type this post out. 

vix

In order for the concern to fade away, I am going to need to see some kind of break through that takes the VIX somewhere into the mid-11’s or lower. Do that, and SPX hits new all-time highs, don’t do that, and we are moving lower again on SPX. 

I have seen enough sell-offs at current price levels to know that I do not want to be heavily long right here. Instead, I want to be long and nimble. Right now I am 30% long and 70% cash. I could add another position today, but instead will let the weekend play out and see where the market stands on Monday. 

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