VIX Indicator

There is fear indicator that the stock market uses.  It's called the VIX.  When it is low it means that investors aren't really worried about anything.  And right now it is very low.

Since we know that people as a whole are really not very bright...this can be concerning.

Think about it.  When the tech stock boom was going in the late 1990's everyone thought the dot.com stocks were going to go up forever.  When those broke apart everyone then believed that real estate was going to go up forever.  People are like the lemmings of the Arctic Circle that all run off a cliff to their deaths every so often.  They always do it in a large stampede.

So when people don't think there is anything that can go wrong...it usually means that things are about to go dreadfully wrong.

The VIX (Chicago Options: ^VIX) or fear gauge is at the lowest level since July 2007. Not only are investors complacent about any possible risk, but the financial media is too complacent to write about investors lack of fear.

Lack of publicity of a bearish indictor usually increases the potency of its message. Does this mean the stock rally is about over?

This doesn't mean stocks can't go any higher, but just as a sore throat often leads to a cold, an ultra-low VIX reading can easily lead to a pronounced sell off.

Here;  http://finance.yahoo.com/news/vix-near-5-low-jinx-163201735.html

I mean, think about it....did Greece's problems just magically disappear over the past few weeks just because the U.S. stock market went up?  Are 45,000,000 U.S. citizens on food stamps suddenly forgotten about just because the stock market had a rally?  Are broken families led by huge divorce rates all going to heal because the DOW is up?  Is a war between Israel and Iran not a concern to anyone just becase the S & P 500 has been trending up?  Did the $50 trillion shortfall in Social Security and Medicare all go by the wayside in the past few weeks?

The list just goes on and on.

But just like the ostrich that puts its head in the sand believes that if he can't see it...it simply doesn't exist....it seems like the financial media has just recently stuck its head in the sand.

"Clear sailing as far as the eye can see!"....is usually a sign that a serious storm is weeks or months away.

Is the DOW the god of this country?...or is the God of Abraham, Isaac and Jacob the Creator of the Universe?  Or can we have both?

I think not.