VIX Drops To 14 With S&P 500 Expressing Overbought Conditions & Errand Product Launch From Samsung

Despite it being a QT day of significance and without the benefits of U.S. Treasury issuance offsets, the major averages still rallied and after the FOMC minutes were released. The minutes proved innocuous by and large, inline with what most economists, strategists and analysts had previously assumed. The assumption was that there would be some debate and or dialogue amongst the committee members on how to approach ending the balance sheet reduction program.

"Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve's asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserve's balance sheet," the document said."

On the rate hike front, patient was the peppered verbiage within the minutes The Fed judged that a "patient" approach to interest rate hikes would be prudent as it continued to weigh various headwinds to economic growth, those headwinds at home and abroad.

"Participants pointed to a variety of considerations that supported a patient approach to monetary policy at this juncture as an appropriate step in managing various risks and uncertainties in the outlook," the minutes said."

If there was anything that market participants could view as anti-market or hawkish it would have been the insinuation within the Fed minutes that noted if the potential headwinds eased, a re-evaluation of the "patient" approach would be warranted.

As noted earlier, the market seemed to accept the FOMC minutes in stride, finding little new nuggets of information of very much concern at the moment. Another significant announcement came in the afternoon from Samsung. The Korean manufacturer announced the first consumer-ready foldable smartphone Wednesday at a launch event in San Francisco. The new phone, called the Galaxy Fold, has a special display that can fold open, from the middle, if you want to use it like a tablet.  I have been on top of this technology since 2016 when I authored a piece on the smartphone industry's usage of curved glass. In the article titled A Deep Dive Into iPhone 8 and Curved Glass, I dive deep into the production issues related to the usage of curved glass and the innovations that Samsung was working toward at that time.

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