The market has stumbled in recent days even as the economic news has been highly positive. On Thursday, 3Q GDP came in at +3.5%. On Monday, the October ISM Manufacturing index came in at 56. Tuesday morning we had the news that Berkshire Hathaway (BRK.A) will be acquiring railroad Burlington Northern Santa Fe (BNI) for $100 a share in cash and stock - a 31% premium to Monday’s closing price. Warren Buffett said this represents a long term bet on the U.S. economy.

Yet stocks are selling off when you’d expect them to move higher. Not only that but volume has returned to the market of late with NYSE Composite volume in excess of 6 billion shares 3 of the last 4 trading days. We haven’t seen that in a few months. The Volatility Index (VIX), commonly called The Fear Index, has spiked 50% towards 30 in just the last couple of weeks. This suggests many pros are buying put options to protect their profits or even speculate on a decline in stocks.