On Friday the economy surprised with good employment numbers continuing to show an improving economy. This has a profound effect on the market that is now trying to survive without the influence of the Fed’s money. The gains in the market are most recognized in the Russell 2000 which has had an almost straight up run since early February.
Today we had a flat opening even though the data from China is not good. At this moment we are at almost flat from, recovered from a small selling pressure.
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The interesting aspect in the market is the elevated state of volatility. The assumption was now that the Ukraine crisis has settled down the market was waiting on the employment numbers. As we saw on Friday volatility dropped only slightly, 0.70%. This volatility could be the result of the Ukraine crisis not being completely solved or an increase in out of the money option purchases [/membership]