As Good As It Gets

It was another in a long line of steady days in the market, extending the steady rally mode that's existed for months. I'm uncomfortable being bullish when things are this good. How good are they?

Yesterday, David Merkel cited a streak of 91 consecutive days (now 92) without a decline of 1% in the S&P 500. That's a pretty mind-blowing statistic.
The volatility index is at record lows and trying to get into the single-digits for the first time... ever.
Big-cap tech is on fire, with the highest-profile names of Microsoft (MSFT - commentary - Cramer's Take), Apple (AAPL - commentary - Cramer's Take) and Google (GOOG - commentary - Cramer's Take) all at 52-week highs.
Metals are in bull mode.
Bonds are rocking and rates are low.
Spreads on corporate bonds are low.
It's more surprising when you walk into your office in the morning and don't see an 11-figure private equity deal taking supply out of the market.
The permabears are even finally starting to get a little red-faced.

If the permabears would finally try to get long for a trade or two, this market might really be in trouble. My guess is that when the market does finally turn, we'll get the classic "flip it" setup, as bulls panic and permabears try to grab some long-side trades -- basically what we saw back in late spring and into the middle of the summer. It's almost enough to make you feel bad for those doomsdayers. Almost, but not quite, right?

At any rate, I think there's some downside risk when things are this good. Buy the ugliness; sell the beauty. (I'm talking about stocks, OK?!)

I'm off to film "Your World with Neil Cavuto" for Thanksgiving Day on Fox News. (What? You were gonna watch football?) I'll also be on "Cavuto on Business" on Saturday on Fox News.

And I'll see you tomorrow right here on these pages. Have a great night.

At the time of publication, the firm in which Willard is a partner was net long Microsoft, Apple and Google, although positions can change at any time and without notice.

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Cody Willard is the manager of a hedge fund and a contributor to the Financial Times and VON Magazine. He is also a regular guest on CNBC's Kudlow & Company and an adjunct professor at Seton Hall.

He earned a bachelor's degree in economics at the University of New Mexico. Willard appreciates your feedback -- click here to send him an email.