Last week a bunch of data came out by the Gallop organization that suggested that stock market investors are basically the most bullish they have ever been in over 20 years.

Even on a short-term basis, the majority polled believe short-term gains are coming.

On one hand, the masses have a reason to be bullish on the market as the S&P 500 has not even fallen more than one percent in a single day more than twice this year.

And there hasn't been a real correction in the stock market of more than 10% in over a year and a half.

That's so long ago that it is out of people's memories.

At the same people bearish on the market have had to shake their heads too and wonder if the stock market will ever fall again?

But everyone knows in the back of their mind that these are weird times.

I have been among the few though that have warned that there are risks in the stock market and that we could even see a drop of 15% or more in October and November.

The high valuations are a risk, but there has been some internal deterioration inside the stock market taking place.

I started to notice that a few months ago and saw it as a big warning sign - however, it isn't picking up in the pace of deterioration this month and so that takes a lot of the immediate danger away from the stock market.

I talked about how the sectors are trading in a strange way overall in this interview I did yesterday with Jim Goddard.

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However, in this interview, I also said that I'm not as worried about a big market collapse as I was a few weeks ago for the short-term this year.

I still think it will pullback in October and November, but the pullback may not amount to much at all.

Last year there was a small pullback into the election that was basically nothing.

What has changed the past few weeks for me is the market firmed up this week as there is now expectations of a more dovish Fed policy going forward now.

That's helping gold come alive, but it is keeping stock market bulls all bulled up.

At some point, the market will totally roll-over, but we are not at that point yet.

The market action hasn't been as negative so far this month for me to expect a big collapse this Fall.

At the same time, most stocks are just floating around trading very thin and dead so I'm not excited about trying to play breakouts or do lots of buying either.

In this environment what I have been doing is selling call options on stocks that I do not own to generate some nice income.

Tomorrow I have two such options trades expiring and that means they will be over and I will be going into new ones soon.

What I look for is monthly income generation from simple trades like this.

That will mean a new options report will be released soon with new trades to profit in this market environment.