The S&P 500 finally found its support near the 20-day low formed in mid-November and rallied three straight days. Topping off the action was a Fed interest rate hike announcement that was received favorably by Wall Street, carrying the broader market solidly above both major moving averages. We now sit in the middle of our well-defined 2015 range, and are set up for a possible “golden cross” with the 50-day and the 200-day moving averages now touching.
The CBOE Volatility Index (VIX) spiked above 27 earlier this week, but has since cooled off rapidly below 18 the last two days as market sentiment has brightened dramatically. Clarity about interest rates and dovish comments for future Fed action has helped, along with budget actions in Washington that signal that there will be no government shut down any time soon. Did you know that you can actually trade options on volatility? To learn more, click here: http://www.optionsuniversity.com/options-academy-online/
OVERSEAS: Asian markets have followed through on positive U.S. market price action by rallying broadly and strongly overnight. Shenzhen is up over 2.6%. Similar price action is happening in European markets with the Dax leading the way, up over 3%. It is possible that the bank of England may raise rates next year, but for now, wages remain weak even as unemployment is improving.
OIL: Inventories continue to climb by millions of barrels to near all time highs, as prices have dropped to the mid 30’s. Warmer than usual temperatures and seasonal re-tooling at refineries won’t help the demand situation in the short term. The U.S. has toyed with the idea of lifting its export ban for the first time in decades, but the White House has already signaled its opposition to the idea. Courtney Smith has been super accurate at predicting the oil market months in advance. Click here to learn more: http://www.optionsuniversity.com/tradesmith-video-newsletter/
JOBS: New Jobless Claims came in very close to expectations at 271K. This represents a marked improvement over the 282K figure from last week, and the 41st straight week that new claims stayed under 300K.
BIOTECH INSIDER: Immuno-oncology has been around for decades, but it’s just now being viewed as an essential, long overdue weapon in the fight against cancer cells that could generate as much as $35 billion in sales and help treat up to 60% of all cancers. One of the companies that could benefit from the coming boom is Ziopharm Oncology (ZIOP), whose stock is currently oversold and testing triple bottom support just under $8.60. While the company is still in initial phases of testing, it may still pay off long-term. The other company that could benefit in Juno Therapeutics (JUNO), which just announced that clinical data from separate trials for chimeric antigen receptor (CAR) T cell product candidates, JCAR015 and JCAR014, demonstrated encouraging clinical responses in patients with relapsed or refractory (r/r) acute lymphoblastic leukemia (ALL). To find out how to profit from the continued growth in biotech, click here now: http://optionswealthinsiders.com/biotechv2/
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