The S&P 500 this week has charged above the 200 day moving average, pulled back to it, and bounced off of it to the upside. The bounce was assisted by dovish comments from Janet Yellin this week after the FOMC meeting, leaving the market in the middle of the trading range that has been the norm for most of 2015. After surging since late September, the markets are now in positive territory, having recovered all of the losses in the August pullback. However, a weak GDP growth of only 1.5% reflects a global economic slowdown.
The CBOE Volatility Index (VIX) has now returned to rock bottom levels at 14.33, indicating a major improvement in sentiment. Closing out October on a positive note would also signal hope for those looking for signs that the seasonal bullish season has begun. One possible concern is that revenues have been light for many companies reporting earnings, as global economies remain soft. To get the inside scoop on how to trade all markets, click here: http://www.optionsuniversity.com/academy
OVERSEAS: Asian markets were mixed and relatively calm. The Nikkei, Shenzhen, and Shanghai were up fractionally on a quiet day. European markets were down across the board with the FTSE off about 1% amid concerns about a British exit from the EU, and financial problems at Deutsche Bank.
OIL: Crude inventories continue to climb, rising another 3.4 Million barrels this week. However, a drop in gas inventories is kept oil prices propped back up to the mid 40’s from the low 40’s in the crude price per barrel.
JOBS: New Jobless Claims figures came in slightly better than expected at 260K, compared to a consensus of 265K. This is up 1K over the previous week, but the 4-week average remains historically low. Continuing claims figures are also showing improvement.
BIOTECH INSIDER: Shares of AbbVie Inc. dropped more than 14% after the FDA warned that the company’s hepatitis C treatments – Viekira Pak and Technivie – could cause serious injury to the liver mostly in patients with underlying advanced liver disease. In the warning, the FDA noted 26 cases of liver issues had been reported since the drugs were approved. Some of the cases led to liver transplants and death. As a result, the government agency demanded stronger warnings of labels, which lead to the stock decline. However, many analysts consider the decline to be an overreaction, considering that only three to five percent of the hepatitis population suffers from advanced forms of liver disease. That tells us the long-term impact of the FDA news on the stock could be modest. To gain further expert insight on biotech opportunities, please visit: http://optionswealthinsiders.com/biotechv2/. And to get further information on just how profitable biotech investing is, please view our free educational video here: http://www.optionsuniversity.com/blog/biotech-big-money-secrets-recording/
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