Stocks continue to rally with the earnings surprising just about everyone. Day to day the SPX finds a way higher and higher for no apparent reason. The squeeze in commodity names has the whole sector trading again. Witness the dead turnaround in the miners today. If all that excitement is too much for you, boring old INTC might work.
IBM got completely destroyed today. The stock erased a month of gains in a day on what have been predictably bad earnings. But, given the recent price actoin, is it time to 'Buy the dip?' The answer is YES, but not the dip in the stock (not on any level).
Every time bond vol has gotten this cheap it has been a screaming buy. We are there again, I like owning TLT premium and IEF premium for that matter.
Today in the Pit Report we were scrolling through IV levels that were popping up as cheap and one of the financials hit for the 1st time in a long time. The cheapest financial, by far, is JPM. While XLF and some of the other names that have already had earings have seen their vols back off, none has taken the dramatic drop in IV that hit JPM the last couple of days
Somewhere along the line stocks stopped worrying about China, oil prices and mass currency devaluations. My sense is that stocks like certainty and for now neg interest rates, while crazy, are at least certain in several G7 countries. Let put that aside as stock rocked to the sandbagging JPM as the financials showed up today. The big daddy lately has been oil and with the Doha OPEC talks this weekend my thoughts turn to gamma.