Well the crazy-show that is coming out of Washington regarding Syria takes its toll yet again on the markets. After the Saturday Obama presser, where he said he would seek congressional approval to attack Syria (a sovereign nation), Futures market exploded higher on Sunday and Monday into today. Then, we start getting headlines from various members, like Boehner, Cantor, Pelosi, and other clowns, that they support attacking Syria, and that they believe they will have enough votes to do so. Markets sell-off, erasing all the weekend gains. Dow is currently red, Oil has popped back above 108, and S&P Futures (ES) are trying to stay green. Currently ES is up 2.95 handles at 1634.25 with 1.6MM minis traded. Session low came in at 1632 even, and session high at 1650 even. From high to low that’s an 18 handle drop.
Finally we get a Headline from the U.N. : U.N. CHIEF BAN SAYS USE OF FORCE ONLY LEGAL WHEN IN SELF-DEFENCE OR WITH U.N. SECURITY COUNCIL AUTHORIZATION
VIX opened down over 3% at 16.47, touched a low of 16.11, and then popped to a session high of 17.31. Currerntly VIX is up 1.23% at 17.22. Volume has picked up, as hedging continues, with VIX Futures well off the lows this morning. Heaviest action in the front month is in Call 27s, with 136K traded.
USDJPY 99.3080 EURUSD 1.3169