Complacency

"Never have so many paid so much for so little," to paraphrase Churchill. Banks flush with cash and eager to lend even more aggressively than the bond market is a sure warning sign. When people think there is no longer risk they get caught up in the froth and don't do their homework.
Management is being lead into leveraged buy outs with the idea they will make even more in the exits years out....even when they pile more debt on the books...caution is warranted with these classic red flags..

The markets rally today is predictable month end with people putting cash to work in their favorite names, covering shorts (oil and gold) and watching the tape attempt new high's.

The opposites continue to play out verses consensus thinking..
1) The economy and earnings better than expected.
2) China strength better than expected.
3) Oil stronger than expected both demand and price.
4) Housing better than expected volume and price
5) Retail spending better than expected

Danny Boy seen here is comfortable looking at all the turkeys outside eating the bird feed before the deer come back and take it all!