In the 56 years I’ve been writing Dow Theory Letters, I can’t remember a more difficult or puzzling situation than the one we now face. Yet, day after day drifts by and the stock market holds fiercely together. … The dividend yield on the S&P Composite is now a micro 1.98%. At the same time the margin account on the NYSE is at a record high. The Dow and the S&P are both at record highs, and at the same time the VIX is near record lows. Thus complacency reigns in the face of a market that is near record levels of overvaluation.
This is a stock market that is not ready for any negativity or
bearish developments. In the meantime, John Williams of Shadow
Statistics warns that the government, in its desperation to paint an
optimistic picture on the economy, is putting out phony or doctored