This Week in VXST – 5/30/2014

One of the great things about the financial markets is that there are numbers everywhere.  Millions of market participants make decisions throughout the work week that influence these numbers and the result is a market consensus based on where the numbers end the day , week, month or year.  What that should mean is that numbers never lie, but I think in the case of VXST rising last week the number may be fudging the real story.

VXST PA

VXST rose from an all-time low last Friday of 9.49 to 9.73 this week.  However for the spot index three day weekends cause a sort of extra headwind that I have studied and written about extensively in this space.  I haven’t been able to fully quantify the extra three day weekend pressure, but it is there and the 0.24 rise in VXST is probably less than the rebound that comes to VXST after a three day weekend.

VXST

 

Finally, we get an employment report this coming Friday which is one of those known unknowns that can result in extra market volatility.  I’ll be completely focused on VXST later this coming week to see how the index and futures anticipate and react to the jobs numbers.