It's the silly season with indicators like the sleepy VIX and the over bullish state of the AAII dumb money investors mucking up a short term (post Russell Rally) that is at odds with a growing list of things arguing that the herd is going to get caught way off sides at some point this year.
The herd is apparently cowering in a corner sucking its thumb reading about the Great Depression again. Unlike with the 2008 disaster, it feels like the herd has been managed there this time. Ever since Bill Gross shorted the long bond at the lows (yield highs) forming a counter party of T bond sellers for contrarian buyers the news has been all T bond positive and now we reside at the opposite end of the spectrum, with calls for getting out of all stocks, MF Global margin account hysteria and DEflation.
It's the old patience and perspective thing. I know that is boring, but smart players are keeping both on the front burner. There will be near term market issues, but the big picture is where the money is made (or saved). Watch the long bond... watch Uncle Buck... watch the euro... watch gold... watch silver... and watch those assumptions and 'follow the guru' impulses.