While the market waited for NFP numbers to come out on Friday, the Fed declared the subzero temperatures as a drag on the economy. Unless you were selling de-icer or coffee during February, they were probably right. A little milestone kicked in today, in case you were not watching; FB closed at an all-time record just shy of the intraday high. Last year folks were wondering if this was the worst IPO in history, and this year they might be wondering when FB gets to $100.
I guess the Russians not invading the Ukraine is enough for new all-time highs in the SPX. I have not gotten in the way of this market yet, and will not start now. The thing I am looking for is what is on the horizon that will make IV move next. Most likely that is the employment numbers this week.
After again flirting with all-time highs, intraday stocks took about a .6% dump this afternoon following the Fed Board minutes release. They are going to continue to the Taper and there were even some hints at raising rates sometime in 2015, although that was just a few hawkish voices. The market had already given back some gains, then teetered into the red for good. The VIX was bid from the morning, so IV seemed to have an inkling of a move.
More testimony leads to another flat day for the market. After the rally of the last 3 days a rest was needed. The strangest thing is the volatility crept into the market and is just as fast leaving the market. VIX cash was down .20 today and all the volatility products pretty much followed suit.
Stocks got a breather today with the SPX up just .10% to 1798 near the close. VIX somehow forgot about the weekend and should end up around .02 today. For the first time in a while, no news produced a market that did not sell off like the last several weeks. Stocks did not give back the low volume rally on Friday either. It feels like if the emerging markets yawn, stocks here do nothing, and there was a bit of that today.