Stocks were drifting a bit today, consolidating the big gains from the first day of March yesterday.
The ADP jobs number was better than expected this morning, which caused some to reflect on the coming Non-Farm Payrolls Report, and the likely actions of the Fed at their March FOMC meeting.
As I noted yesterday, traders are heavily hedging their stock positions in the options market. They seem to be pricing a 'big move' in to overall market stance. But I am wondering why this 'anecdotal evidence' is not showing up in the VIX, which is a measure of the difference in call and put option prices.
In other news, the ex-CEO and fabled 'father of US shale oil,' one of Oklahoma City's leading citizens, and NBA team co-owner Aubrey McCendon died last night in a fiery car crash. Police are investigating. There were no other cars involved, and no skid marks on the road. Mr. McCendon went off the road in his car at a very high rate of speed. They said he 'drove straight into a wall.'
Mr. Mcclendon had been indicted yesterday by the Justice Department with conspiracy in rigging the prices of oil leases and using loans to benefit his personal stakes in wells from the company.
Have a pleasant evening.