These market conditions are very strange. The ES is expensive compared to oil, gold/silver, EUR/USD, VIX, and it was expensive to bonds (bonds rose with the ES for a while but snapped into shape quickly). First of all, I am preparing for longs in the Euro, bonds, silver, oil, COP (Conoco Philips), and the yen. I have given up any hope of stock trades for the time being. The only exception to this is my long in FXY (Yen). I will probably execute my bias through vertical spreads. My personal trading flaw right now is my interest in shorting the ES. This is a dangerous move with a ton of money flow into stocks. The VIX does look really appealing since it is so cheap. (the vix was up today .37% on a large up day in stocks). Lastly, the dollar is rising with the es which is very odd. Overall, most correlation are pointing to market fear. Thus making the ES very expensive, but I am not very trusting of non-options directional plays (there is opportunity in some pairs though).
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