The stock market ripped out of the gate and quickly jumped to a 1.5% gain.   The market gains were attributed to the BAC capital raise and better than expected earnings out of Target and BJ’s.  Financials led the market down as they have since the inception of the NYSE.  The S&P traded down 2.5% from its intra-day high, oil finished up 2.75%, copper finished up 1%, long bonds closed up 1%, the dollar got hammered for a 1.2% loss and the yen surged 1.4%.

The gap down in the VIX proved to be another sign of complacency (for more on the recent large moves in the VIX see here).  The move reversed itself by days end.  I continue to think you have to be a seller of this market.   As I mentioned in the May 10th commentary this market appears to be forming a top.  Of course, tops aren’t events, they are processes.    Tomorrow’s jobless claims will guide tomorrow’s movements.  With a huge move in the Yen and what I believe is a very high jobless claims estimate there is the likelihood that this market will trade higher tomorrow.  With the holiday weekend on the horizon I think it’s prudent to continue being a seller into any upside.