One can be forgiven for suffering from whiplash on a choppy day like today.

The markets opened weak with stocks in the red and crazy headlines coming out of the geopolitical sphere only to recoup and rally ahead of a long weekend (Monday is a holiday; President's Day).

The S&P stock index closed +0.3% higher and corporate credit closed firm. Real-money took advantage of the morning softening to load up on risk.

High yield out-performed relative to investment grade yet again; credit will rally into next week, barring any crazy adverse catalyst.

Speaking of catalysts, fears of social unrest for Saudi Arabia are way overblown; the socio-economic situation in the desert kingdom is very, very different compared to that of neighboring Egypt or Bahrain.

Corporate bond new issues continued with JP Morgan selling $3 billion in 5 year bonds at +120.

French bank BNP Paribas tapped the markets and sold $2 billion of 5 year notes at +135.

Rally on.