Fortune favors the bulls as the rally continues.
The spread between short and long term volatility is normalizing, but it may indicate complacency.
Risks are still high, but a proverbial toe in the water won’t drown bullish speculators if they play the right sectors. Staples, Telecoms and Heath Care aren’t moving, but Basic Materials and Energy are flying high. The bond market continues to exhibit a flight to quality, so remain cautious.