Today's post will be quite brief due to 1) a busy schedule and 2) a lack of any new material. The S&P 500 notched new multi-years highs on tepid trading, and the VIX hangs just above single-digit territory. This game will continue until a catalyst comes along and stops the fun. As mentioned yesterday, people's willingness to absorb risk seems to be higher than any time in recorded financial history, so when a catalyst arrives, the reaction is likely to be violent.
Tech shares were recipients of some goodwill generated by John Chambers and company as Cisco reported a 27% increase in revenue and raised guidance. The NDX tacked on exactly 1% while the SOX popped a healthy 1.6%. Broader measures did not participate as strongly, but nevertheless edged into new high territory. Despite the green on the boards, I was fortunate enough to time the afternoon pullback rather well and made a buck selling the NDX. Picking are slim these days, especially for bears.
Precious metals traded in a narrow range and appear to be waiting out the consolidative action in the dollar. The Dollar Index has been bound by the 84.5 to 85.5 range for most of the year, and a break one way or the other may tip off where metals go next.