What’s catching my eye?
1. The awful events in Ottawa ↓
2. AT&T downgrading revenue forecasts ↓
3. US oil inventories rising ↓
4. The EURO ↓
5. US dollar index ↑
6. VIX ↑
7. Gold ↓
8. Boeing ↓
9. Interest in the Medibank Private IPO ↑
10. The lack of inflation in the world ↔
There’s certainly no lack of volatility with the combination of strong bellwether US earnings and hopes of European Central Bank action driving the biggest percentage gain for the S&P500 all year, earlier this week. It was actually the biggest daily points gain since 2011. What a difference a week makes since the Dow’s - 460 point intraday swoon, which actually was the knife sticking.
Ebb and flow
While the VIX has pulled back to 16.2 from a panicky peak last week of 31, it remains elevated versus averages of the last few years and I believe we should position for further volatility, but volatility that is lesser than the wild swings we have seen in the last few weeks.