Markets are showing no signs of slowing in a broad-based rally. The S&P 500 has broken out to new highs for 2016, and is squarely back into the middle of a trading range that dominated the majority of 2015. All major indexes are following suit with very similar patterns as we enter the final month of strong bullish seasonality. Option traders know how to get much larger returns using leverage. To learn how to trade options, go here: http://www.optionsuniversity.com/curriculum/2016/
The CBOE volatility index (VIX) has now reached EXTREMELY low levels, in fact, the lowest levels of 2016. The VIX is now between 13 and 14. Fed Chairman Janet Yellin’s dovish comments combined with firming oil prices has created an environment of increased risk appetite and strong bullish sentiment. Changes in volatility can be profitable, and extreme lows can present unique opportunities for options traders. Did you know that you can actually trade options on volatility? To learn more, click here: http://www.optionsuniversity.com/options-academy-online/
OVERSEAS: In overnight actions, Asian markets were mixed and flat with China showing slightly more strength than Japan. An unusually calm day by Asian standards. European markets were broadly down, but mildly so. The main global concern is coping with the slowing of China’s economy, and the potential for increased reliance on negative interest rates to stimulate growth across the globe.
OIL: Crude inventories remain at record high levels after an increase of 2.3 Million barrels this week. However, compared to last week’s 9.3 Million inventory surge, this week’s increase seems mild. Also, gasoline inventories continue to drop despite high refinery output levels, suggesting stronger demand. This has left crude oil prices firming up in the high 30’s, and led to some experts suggesting that the bottom has been found in oil. Courtney Smith is an expert in global markets. To hear what Courtney Smith has to say about oil and other opportunities, click here: http://www.optionsuniversity.com/tradesmith-video-newsletter/
JOBS: The ADP Employment report came in close to expectations, as payrolls increased by 200K in the month of March. However, U.S. Weekly Jobless Claims came worse than expected at 276K new claims versus an expectation of 266K. This is also 10K higher than the previous week.
BIOTECH INSIDER: For quite some time, our resident biotech expert, Ian Cooper has been pounding the table over ACADIA Pharmaceuticals (ACAD), as some of you have seen right here in this blog. With impressive technical pivot points, and successful Phase I, II and III trial data in hand, the stock has surged from its low point below $20 weeks ago. Its drug could help meet a nasty unmet medical need known as Parkinson’s disease Psychosis (PDP)… and is now very close to full FDA approval this May 2016. It would be the first of its kind and could help treat up to 40% of Parkinson’s patients that develop PDP. It stands to be a game changer. Odds of FDA approval just grew tenfold after an FDA advisory panel committee awarded the company full critical endorsement. On Tuesday, the panel had to determine whether the drug was effective, safe, and whether the overall benefit of the drug’s effects outweigh any risks associated with the drug. On the first question, the panel voted 12-2, the safety question 11-3, and the benefit-risk question 12-2, according to Business Insider. The gains realized could be significant. The best part – our resident biotech expert just uncovered five more Phase III drug trials that could result in monstrous gains, too. For more information on other biotech stocks that are just as hot, click here — http://optionswealthinsiders.com/biotechv2/
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