The S&P 500 is decidedly having a down week, and is also down for 2015. With earnings and the September Fed announcement behind us, U.S. markets are mostly being influenced by global factors such as foreign economic news and commodity prices. We are currently at the bottom end of a new trading range, leaving investors wondering if support in the low 1900’s will hold, or if there is yet another shoe to drop this fall. This is an options trader’s workshop. To get the best comprehensive options trading, click here: http://www.optionsuniversity.com/academy
The CBOE Volatility Index (VIX), has now remained in the low 20’s for several days. The “new normal” situation consists of trading days where the Dow is up or down over 100 points, whereas earlier in the year, most days moved less than 100 Dow points. Overall market sentiment is fearful, but not as extremely as it was a month ago. Janet Yellin is speaking again today, leaving Wall Street just a bit curious and a bit on edge about what she will say next. Options traders in particular can thrive in any circumstances. To learn how to trade them yourself with the very best education, click here: http://www.optionsuniversity.com/academy
OVERSEAS: In Asia, Shenzhen and Shanghai showed relative strength, seemingly a bounce back after week economic data rocked the markets previously in the week. Certain markets, like Hong Kong are not sharing in the rally. Meanwhile, the Nikkei continues its downward path, having dropped over 10% in recent weeks. European stocks were down across the board as the EU copes with currency issues, Syrian refugees, and a general economic softness.
OIL: Crude prices drifted lower again this week from the high 40’s down to about $44 per barrel. Inventories remain high, but came down by 1.9 Million barrels as cuts in production are already underway by certain major producers. Overall demand remains strong.
JOBS: New claims for U.S. jobless benefits had been expected to come in at 275K for the week (a 10K increase over the prior week). The actual figure was better than expected at 267K.
HOUSING: Existing home sales fell short of expectations (5.31 Million versus a consensus expectation of 5.5 Million). Overall demand remains high after six months of relatively strong numbers. Mortgage applications spiked significantly in the wake of the Fed’s decision to leave rates unchanged this month. New home sales data will be released later today.
BIOTECH INSIDER: Despite recent broad selling pressure, there is still a great number of biotech trading opportunities. In fact, our resident biotech expert highlighted Collegium Pharmaceuticals’ Xtampza ER – an abuse-deterrent analgesic for the treatment of chronic pain – as a buying opportunity. As noted, “As the date approaches, there is potential for the stock to appreciate from current oversold conditions on positive Phase III clinical trial results.” Eleven days after that note, the stock jumped 39% on news an FDA advisory panel highly recommended approval of the drug. The FDA will now consider the panel’s recommendation as it nears its goal date of October 12 for completion of its drug review. To learn more visit: http://optionswealthinsiders.com/biotechv2/
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