Midday Check

Is complacency creeping into this market?

While the volatility indexes and ARMS Index are higher today, the ISE Sentiment Index is showing readings that we have not seen in awhile. The ISEE is above 200 right now, flashing signs of complacency among investors.

Now, one day does not make a trend, but if this keeps up, it will be a sign to take some profits off the table.

AAPL is ramping over $165 today, while GOOG has topped the $600 level. Both are in record territory, and enjoying big runs since the August lows.

The weakness in the overall market today can squarely be attributed to oil, which is down over $2. This is causing a selloff in the energy stocks, which is weighing on the market.

But I am more interested in the action in the Yen. The above chart of the Yen ETF shows that the Yen has broken its recent uptrend, and that bodes well for our markets. This has to do with the carry trade that I've written about. And with the Yen moving lower, fears of an unwinding of this trade have subsided.

long AAPL, GOOG