GOOD MORNING! As the Middle East conflict nears the end of its third week with no end in sight and Iran continues strike energy assets and infrastructures in neighboring countries the markets remain un-anchored. Added to caution about inflation by the Fed and other developed countries’ central banks, stocks and Treasuries started the day in near free-falls. Both found some footing and losses were pared in the last hour of trading as oil prices retreated on the headlines, “Netanyahu Says Iran Lost Ability to Manufacture Missiles,” and “Israel Helping US Open Strait of Hormuz.” About the same time the US authorized delivery and sale of some Russian oil. Traders/investors used the headlines to cover shorts and take new long positions. The long-end led the bond market rebound and flattened the yield curve’s profile. Stocks also popped on the headlines and had a cup of coffee in positive territory before retreating and ending the session with marginal losses. One thing that may have spooked the market to being cautious is today is triple witching day with roughly $5.7 trillion of options tied to individual stocks, indexes and exchange-traded funds.

     Spring has sprung, and the markets have become un-anchored again. Treasury prices are slumping again this morning on inflation fears and the market can’t look to the Fed for help. Stock index futures are also swimming in a sea of red on the high prices-slow growth narrative. Today’s calendar is bare except for a couple of talking Fedheads. Stay buckled up.