Dangerous Complacency

I placed the white horizontal line at the last time where the Vix traded at its lowest point in 2007. For the data that we have from Think or Swim chart software, it is as low as it will ever get from the information that we have. That means that the market is at its highest risk that it has ever been. The trendline from the month of December in 2007 rises to the high of 69.4 from the low of approximately 10.09 the dialog box in the picture shows a growth of 539% in the fear index, known as the Vix. This happened over a little less than the two years or 23 candlesticks, for this chart every bar is one month. There are many reasons to be in stocks right now, but the one key take away in this chart is that options are not being used to protect against any downside PUT OPTIONS should any of that occur within the next year or so. It is a high risk environment, but trends go longer than most people think they can, myself including. Shout out to Robert Prechter and Harry Dent. "Drops Microphone"