alfredSeptember is the worst month for the stock market; interest rates have recently seen a record surge; we appear on the verge of going to war; stocks are extremely overvalued; housing, employment and retail sales are signaling a slowing economy; congress is facing another debt ceiling debate and the fed is very close to reversing its quantitative easing program that has been a massive boon to financial assets. Still, investors are doing their best Alfred E. Newman impression.

putcall

The demand for put protection is clearly outweighed by investors betting on the upside through call options. Market bottoms aren’t made of this.