3 Things Make Me Nervous

 | Sep 20, 2013 | 2:22 PM EDT  | Comments
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Stock quotes in this article:

tsla

,

amzn

,

nflx

Three things make me nervous.

One, the Volatility Index (VIX) is way too low.

Two, we are headed into the budget showdown, and you need cash to buy as the showdown goes along -- it is a gauntlet, remember.

Three, we are so overbought it makes sense to take profits, even if things are good -- and they aren't.

We are so uncertain at this juncture. The financials act terribly because people sense that rates can't stay down, even as they appear to be. Retail has really stalled. We have earnings around the corner. We are hitting all sorts of new highs.

Yet, where's the beef? If you haven't read a single Washington story, you know that you are going to hear endless shutdown talk. Why is that a reason to buy? It is only a reason to buy when we get closer to the end and you need cash now.

We have been trimming all day because the complacency ahead of the talks is a little mind-numbing.

And the ultimate tell? Tesla (TSLA), Amazon (AMZN) and Netflix (NFLX) mock all the short-sellers. They show the worst of the speculative spirits. A classic case of cult stocks that are immune -- until they aren't.

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