The Sleepy Time Market

The big bad euro bond trade is still in place with UK and Spanish 10-year yields hitting record lows.

Meanwhile, the Bank of England's Ian McCafferty said more easing will likely be required to fight the after-effects of the Brexit, and it's steppinig up its bond purchases.

That's sending the pound lower, while the FTSE 100 is up about 0.3%.

Crude oil is getting a little follow-through and is up through $43. Yesterday, oil popped on chatter that OPEC may cut output, but that is no guarantee.

Remember, a lot of folks were expecting output cuts from February through June, and they never happened. So don't get your hopes up — they could simply be trying to keep oil sellers unnerved.

Coach (COH) reported better-than-expected earnings, which is a nice surprise given all the doom & gloom around luxury retail. However, Japanese cosmetics giant Shiseido cut its forecast.

Troubled pharma giant Valeant (VRX) reported a sales and earnings miss, but kept its full-year forecast unchanged. The stock is up about $1.50 in early trade, indicating traders were bracing for a disaster.

This is one of those odd days where there's just not much to talk about, and the lack of movement in futures reflects that.

The VIX is down again today, and I would not be surprised to see the VIX break below 11 soon.

We're basically past earnings, the Brexit, and a lot of important economic data, so it feels like the media (myself included) is reaching for stuff to talk about.

Each day, I write T3 Live's Daily Recap newsletter. I always break the day's action into 3 easily digestible stories. And when I have trouble coming up with 3 things to talk about — like I did yesterday — you know it's bad.

I expect the same today.

Yesterday, the SPX and other major indices basically grinded gears.

Crude oil's bump got oil service stocks and high-yield bonds moving hot and heavy, while health care and biotech soured.

Beyond that, there wasn't much to look at.

Market volatility is still around 2-year lows, and it seems that everyone's waiting for an excuse to do something.

I'd keep the same game plan on — watch biotech, oil, high-yield, and small caps.

As long as they behave decently enough, we'll stay in good shape.