Sometimes I feel like the VIX is like a chicken – blissfully ignoring danger until the fox is already in the hen house and then it goes berserk. The fox is being played by the Celtic Tiger.
Sometimes the market ignores the eroding data for so long that I convince myself that it does not matter, that these data points obviously do not have an effect on our market. Then I get smacked across the mouth and told to wake up. If you have been watching the Euro versus the Dollar, you would notice that the Euro is flirting with its previous idea of running towards parity. This seems to be a case of de ja vu, and I suspect that a 1300 level on the S&P might be fleeting.