Quiet Markets

Whenever we have a quiet market I'm, well nervous isn't the right word, but I'd say vigilante. Quiet markets more often than not lead to explosive moves and it's easy to be lulled in to complacency with a quiet market like we have seen this afternoon.

 SPX rather quiet this afternoon... Volume dropping off is where we typically see smart money making moves and especially in a quiet market.

I decided to check on the risk asset layout to see if there were any changes, whatever isn't shown here is moving along fine like High Yield Corp. Credit, but there are some changes worth noting.

 High Yield Credit is acting even better than it was this morning, it still has a ways to go to get back in line, but intraday I like what I'm seeing.

 Yields have been one of the biggest changes since our earlier risk asset update, they looked good this morning, now they are flying and yields tend to be like a magnet for stocks.

 Longer term view, Yields not only got back in line as I mentioned yesterday as needing to happen and soon, but they are now leading.

 While I wouldn't expect too much movement if the Euro was being accumulated, I did check the $AUD and it is showing a positive trend today.

Sectors are moving quietly, but shaping up. The safe-haven trades are gently fading, Basic Materials and Industrials are gaining, Tech in an under-performer, discretionary is quietly creeping up.