We pull out of the Paris Climate Accord and the SPX has its best day all week. It might have had to do more with the ADP number but really until there is a shock stocks are going higher on a wave of earnings and economic growth. Another thing grew today and that is the skew in the SPX.
Time moves forward and the pull of the Fed and rising earnings are keeping stocks at forward multiples we have not seen in quite a while. Daily we get the call for the next correction. Doubtless it will happen at some point but it seems tough right now. Markets were very focused on the circus in the Washington DC and now that is just what it is. A circus with a ring that goes around and show really does not change a whole lot. As a consequence, VIX is still in the 10 handle and realized vol is 11% for SPX with short term options under 6% ATM IV in the SPX.