From Jeff Clark, Editor, Stansberry Short Report:
The broad stock market decline I’ve been looking for over the past few weeks hasn’t happened yet.
Instead, the market has continued to press higher.
Overbought conditions have become more overbought. Negative divergences have grown more negative. And my e-mail inbox and Twitter feed have been filling up with less-than-complimentary comments.
But nothing changes the basic setup right now…
Stocks are dangerously overbought. There is far more risk in the market than is reflected with the Volatility Index (“VIX”) trading below 14. Most folks buying stocks today are probably going to wish in three or four months that they hadn’t done so.
It is hard to be bearish when stocks are moving higher. It is so much easier to simply join the chorus of bulls and sing, “Buy, Buy, Buy.”