The supposition going into this weekend was that all holy hell was going to break loose and that markets would plunge, oh, right about now. Instead what happened was that Iran sent hundreds and hundreds of weapons to Israel, and they were all neutralized. So, yeah, kind of a dud, and this is clearly reflected in the plunging VIX (my concerns expressed on Saturday morning’s video about the VIX are being fully realized here).
Simultaneously, equities are all green, with the small caps RTY the most tepid (about one third of a percent) while NQ and ES, below, are up almost a full percent.
What I find more intriguing is that bonds aren’t buying any of this. Rates are roaring, bonds are plunging, and the way-smarter-than-equities bond market is rolling its eyes and saying the trouble is far from over. I’m inclined to agree!
