Subscribers recognize the message of the market for US Stocks as consolidation (C/P) with a bull phase of sentiment since November 2016. While selloffs can materializes during these periods, they're usually not massive. The observation of surprisingly strong market breadth during seasonal weakness supports this tendency.
Also, anyone screaming sell stocks because the VIX is dangerously low in January neglects to show you that it can go lower as stocks enter seasonal strength (chart 1 and 2).
Headline: Investors are bracing for a massive stock-market selloff
If options traders are correct, stocks are in for a wild ride in February.
Demand for one-month call options tied to the CBOE Volatility Index, a popular gauge of stock-market volatility, has spiked in the past week. The increased demand suggests that some investors are bracing for selloff following the inauguration of President-elect Donald Trump.
Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.