What Is Driving Stocks Higher?

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Oct. 18 (Bloomberg) -- Swan Wealth Advisors Director of Trading and Investments Mark Sebastian discusses his investment ideas on Bloomberg Television's "Lunch Money." (Source: Bloomberg)


Yields the lowest in 12 weeks on this perception that the federal reserve will not yet begin tapering its unprecedented stimulus.

I want to bring in mark, director of trading and investments.

The thing today's rally might not last?

We have gotten a little ahead of ourselves.

Now that we have a temporary deal, everything -- everyone thinks the all clear is on.

We are going to get economic data showing how much damage was done.

We have two non farm payments coming up.

Part of the reason we might be high is the fact that yields are getting smoked, tapering is being moved to march 2014. i would not be buying these all- time highs.

You have noticed that a lot of people have been betting on an increase in volatility through looking at the vix.

Not until early next year when things start to heat up again.

Talk about what you are seeing.

If you look at the vix futures curve, it can get the market is proceeding risks to be.

Traders are crushing november vix features, they are expecting very little volatility through november and bidding on february.

Massive call spreads and call buying, a bid in the february vix futures.

That is related to the potential government shutdown.

You think that might be a mistake, we could see volatility before?

We have lots of economic data coming out.

Really, this budget conference -- if they cannot come up with something by december 15, i think we will see volatility before we hit christmas.

It is a real mistake to sell a 12, 123 vix.

I would be looking to buy options at this level.

Full disclosure, we are carrying a long spx position.

From this level, i think long is a little oversold.

A contrarian call.

One individual stock -- google.

It is making a milestone move about -- above the $1000 share level.

This is unexpected.

The magnitude that we are seeing in the shares.

If you look at options markets yesterday, they were expecting a 3% move in the stock.

We are moving 12% today.

I think what we have seen is a combination of earnings that blow things out of the water and some short sellers that are caught.

There were some people that thought facebook's success with google's hillyer.

It looks like it is also google's success.

A lot of shorts are having to cover.

That is part of the reason it made this run over $1000. i am not sure i will be going long.

You will see people fade.

Can it hold 1000, we will

This text has been automatically generated. It may not be 100% accurate.


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