The markets have responded favorably to the Fed’s decision to leave interest rates unchanged for now. The S&P 500 continued to rise, but is now doing it differently than it had earlier this year. In the latter part of February and early March, markets surged very rapidly; and now, they are taking a healthy “stair step” approach to moving higher, pausing at times to digest the gains. Multiple levels of support now stand between the bears and their success, even as seasonality may shift in their favor in coming weeks. Options traders are ready for anything. To learn how to trade options, go here: http://www.optionsuniversity.com/curriculum/2016/
The CBOE volatility index (VIX) remains at low levels, hovering near 14. Trader sentiment remains bullish for now, but longer term forecasts suggest a more neutral posture over the next six months. That, combined with the prospect of future Fed increases and the uncertainty of an election year could result in a volatility that could shift gears back and forth throughout the remainder of the year. 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: Asian markets were fairly calm in overnight action, with relative weakness in the Chinese industrial markets such as Shanghai and Shenzhen (both down over 1%), but neutral to bullish most everywhere else. Samsung earnings beat expectations on the strength of smart phones. European markets were down across the board as Great Britain continues to consider the possibility of leaving the European Union.
OIL: Crude inventories actually went down for a change, by approximately double the previous week’s increase. This, combined with Russian signals that it is open to supporting a production freeze, has helped oil prices firm up once again and return to the high 30’s in price per barrel. Gasoline inventories, however, increased slightly as refineries continue to crank at over 90% of capacity. 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: Earlier in the week, the JOLTS report on job openings was a bit soft. This morning, the consensus expectation on weekly new jobless claims was 272K (a slight improvement to the 276K the previous week). The actual number came in at only 267K, showing strength in the data both week over week, and in comparison to expectations.
BIOTECH INSIDER: After $605 billion worth of M&A, 2015 became the hottest on record for biotech. And I can tell you that run is far from over. AbbVie recently paid $21 billion for Pharmacyclics. Teva Pharmaceuticals paid $40 billion for Allergan’s generic business. Shire PLC struck a deal to buy Dyax Corporation at $6.5 billion shortly after acquiring NPS Pharmaceuticals at $5.2 billion. It even struck a $32 billion deal to acquire Baxalta Inc. Bristol-Myers Squibb bought Cardioxyl Pharmaceuticals for just over $2 billion. AstraZeneca PLC bought ZS Pharma in a deal valued at more than $2.7 billion. All as competition and demand for new innovation heats up… Nowadays, Gilead is open to a $10 billion acquisition. In fact, Gilead just paid $400 million to buy a liver-disease treatment from Nimbus Therapeutics. After a sell-off in the biotech sector, industry giants are sitting on $180 billion in cash, ready to spend that on M&A, including Johnson & Johnson, Merck, Sanofi, Biogen, Eli Lily and Gilead. Fresh off of an AWESOME big win on Acadia Pharma (symbol: ACAD) our resident biotech expert Ian Cooper is watching several buyout targets of interest right here: http://optionswealthinsiders.com/biotechv2/
The post Jobless Claims Data Positive appeared first on .