Royal Dutch and Exxon have always traded at premiums in the market, ... The merger puts BP and Amoco in the same size and presence globally, and it should give them the same premium value.

I think we're going to see a lot of volatility as the market tries to sort out where the new leadership will come from.

The market was spending sometime digesting whether this meant more rate hikes for longer and concluded this was nothing different than what people had anticipated. At that point, it was 'let's do this some more,'

Even though this pegs to 150 percent of market, the premiums are still lower or benefits more expansive than what can find on their own.

This would be the wrong stage to be suddenly raising rates a lot because the reaction to the earlier rate increases just hasn't occurred yet.

After several days being increasingly optimistic, particularly in the chip sector, investors are now pulling back somewhat wondering if they have again jumped the gun. This kind of erratic move is typical when sentiment is shifting negative to positive.