“There is surprisingly intense energy on board the Surprise…” The words came through bitter, at least as far as the surgeon of Surprise went, for having found himself out of control on a runaway hot air balloon, he assumed he would be dashed, presently against the very firmament. It now appeared to him that he and a large paper sack were chasing each other first into, then back out of existence. This last pass through, however, the doctor had gone a little further, wetting his foot and shoe in the murky little stream, oblivion. Then, when the doctor came back, dripping from head to toe with that unpleasant grime, but otherwise unharmed, his companion had shrieked, “escape!” though, of course, there had been nothing to escape from, and nowhere to.
The market began high this Wednesday morning and has flit about, here and there, showering down fortunes like rain, and generally behaving like a rally resigned to, even intent upon, its own destruction. To be sure, the Fed Chair might turn off the music off at 2:00 PM, but if so, wouldn’t there still be plenty of seats on which to escape, with Boeing (BA) up 7.8%, and particularly with iRobot Corporation (IRBT) up 19%? Plenty of seats indeed, and a flash of a memory from where he knew not, that whatsoever could not be escaped, must necessarily be transcended.
Here are your Wednesday morning market metrics. Industries doing well today diversified telecom, aerospace & defense, and semiconductors. Industries showing weakness include electronic equipment, construction and engineering, and Life Sciences. The VIX is down 0.2% to 9.41 after closing on Tuesday at 9.43. The most heavily traded options this morning are for the SPDR S&P 500 ETF (SPY), with 45,306 July-28 249 calls, and 45,038 July 28 250 calls on the board. The total put/call ratio as of 10:00 AM was 0.78 (371,223/289,167). The advancers/decliners ratio for the NYSE is 1,437/1,442 and for the NASDAQ 1,457/1,289.
This morning’s stock market experience was written in the style of Patrick O’Brien describing Stephen Maturin’s dream of attempting to escape from a runaway balloon while barely clinging to life in an opium-induced coma, (and the novel The Letter of Marque for how else could it have been?