Volatility at its lowest since Lehman collapsed

·       US stocks end the week on a high note : DJIA +1.96%, S&P+2.41%, NSDQ +1.33%. Jobs data was quite bad but not as bad as expected (539k jobs lost in April). Housing data was also better than expected. Results of govt stress tests reassured investors: financials in the S&P rally 23% over the week.

·       Some speculation that this rally might take a breather soon and let some of the fundamentals catch up.

·       General Motors losses 11% (over the week) as the company moves closer to bankruptcy.

·       VIX now down at 32.05, lowest level since Lehman collapsed.

·       Crude oil drops back from a 6 month high. Speculation that last week's 10% gain will not be sustained as global output increases. Barrel now @ $57.78

·       Gold still stable @ $914. Technical signals suggest the price may rise. Hedge fund managers have increased their net long positions.

·       Investors seeking higher risk, higher return products are putting pressure on $ "safe haven" status: €/$ @ 1.3618

 

 

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