Stocks had a ho-hum day today unless your name is AAPL. The late afternoon bid for BHI by HAL might be a sign the oil services business is not dead yet. The Russians are making lots of noise in the Ukraine again but that did not stop the SPX from making yet another new high. It was a small high but a new high nonetheless.
Stocks are struggling today to make it to another record for the S&P 500. As of right now a little push at the end of the day should do it. Without anything news worthy I don’t expect stocks to do a whole lot. A stock that has been doing a lot is BABA.
Alibaba Group Holdings, BABA has been on a tear since mid-October as it held up better than just about everything else with the stuff hit the fan not too long ago. Chinese equities have done ok since then but nothing like BABA. Yesterday was the big Singles Day retail extravaganza and BABA pulled in more of their share.
This is the 3rd or 4th recent record for the S&P 500 as I cannot remember because we have had so many. Stocks are seeing renewed buying interest after the election and for now the wind is at the markets back. There is not much wind in option premiums. All the bears got their time in mid-October and for now that is all they have to hold onto. The bump from the BOJ and ECB has put the kibosh on the bears hopes for now.
Maybe it was the Europeans or maybe it was some jitters in China or Africa. The FOMC suddenly lost it zeal for raising rates. The economy here has been growing but not enough to satisfy our rate mandarins. Maybe it is the TWTR/FB world of instant gratification but it takes time to get off the QE band wagon. The Europeans are in the tougher boat of restructuring economies since they cannot borrow at the rate they used to so they can pay all the benefits. It does not look like Super Mario is going to finance that. Better to have slow or even growth from restructuring than souped up QE.
No it is not a tasty sandwich from the Potbelly shop close to the CBOE. It is a pattern we found in our chat room at the Option Pit. Yeah, Yeah I know you will say it is a “wedge’ but pox on that. It kind of reminds me of a sausage grinder. Meat goes in and sausage gets spit out. In fact one of our clients came up with that. VIX kept grinding with the SPY and doing nothing really.