Options market doesn't show worries about govt. shutdown or a rally pause, says KKM's Jeff Kilburg

Market Overview - The VIX index has decreased by approximately 7%, indicating a lack of concern in the options market regarding potential government shutdowns or a pause in market rallies [1][2] - The S&P 500 has shown significant recovery, with a rise of nearly 35% from its low on April 8, suggesting a positive market sentiment [3] Cash Reserves and Market Dynamics - There is nearly $8 trillion in cash that may be deployed as the month and quarter end approaches, potentially driving market rallies despite forecasts of doom and gloom for Q4 [4] - The market is expected to continue moving higher, albeit not in a straight line, as various headwinds have been overcome [5] Sector Rotation and Technology - A rotation is observed among major tech stocks, with profit-taking in names like Nvidia and Microsoft, while companies like Google are gaining traction [6][7] - IBM is highlighted as a potential leader in quantum computing, with significant advancements expected by 2029, which could transform electronic transactions and the crypto landscape [8][10][11] Quantum Computing Developments - IBM has made strides in quantum computing, with a proof case demonstrating a 34% improvement in bond trading for HSBC, indicating practical applications of the technology [11] - The anticipated full capacity of quantum computing by 2029 is expected to significantly impact various industries [10] Asset Class Performance - Commodities, particularly crude oil, have shown strong performance, influenced by geopolitical factors [13] - The easing cycle in interest rates is expected to support US equities as markets reposition for Q4 [14][15]