One Side of the Boat is Getting VERY Crowded

The stock market looks great, but it is more vulnerable than most investors realize right now.

• It was another narrow advance yesterday, but since they are less common than they have been in the past, it was still a good day for the stock market.

• As we all know, valuation levels are a lousy timing tool. However, sentiment and positioning are better tools, so it’s not out of the question that today’s extreme readings on these issues could create a surprising (and material) pick up in volatility before year-end.

• A quite salute to a Wall Street icon.