I guess the biggest thing going forward for inflation is copper and what is happening there, which has to be up there with one of the craziest moves I have ever seen. If the gains actually hold or take a long time to revert, it will not help bring inflation down at all.
Oil also saw a big intraday reversal due to a bigger-than-expected draw in inventories. This will need to be watched over the coming days.
But the unwinding of the hedging flows dominated the market today as noted by the crush in implied volatility from the VIX1D to the VIX Index, with them all falling. The VIX index’s OPEX comes next Wednesday, which is obviously after this May OPEX on Friday. I’m not all that sure that there is much to be gained from the VIX going lower than 12, though, and I would say, at least based on next week’s OPEX, we could be nearing a floor.
In the meantime, that is it. There may be no write-up tomorrow afternoon. I’m a bit tired from all the excitement.More By This Author:Stocks Rally On Post CPI Volatility CrushThe Hot PPI Report Is Creates Volatility Ahead Of CPI ReportThe Stocks Market’s Advance Stopped Ahead Of Massive Week Of Data
