I do not think we are going to have a significant drop unless the trend in bonds turns back down. High puts is actually a bullish indicator in my opinion. This indicates high overall pessimism, which is generally in place at market bottoms. Generally I want to sell bullishness and buy bearishness in my trading, once they get to extreme levels. What we would want ideally for a selloff, is the opposite of this, very low puts.
There are certainly some aspects of this rally that are suspect, but I am not shorting it. I am hoping for a drop to buy into.
