Nothing much happens in the markets this time of year, right? After slicing through multiple support levels in dramatic fashion, and bouncing from multi-month lows, the markets remain spikey, and yet oddly settled at lower levels. As overseas economic slowdown, currency concerns, and earnings season wane, the focus turns to a slew of U.S. economic data that many will use as magic sign posts regarding future rate increases. Fortunately, using options to mitigate risk and also capitalize on the new big winners presents huge opportunities for experienced traders. Get your edge by clicking here: http://www.optionsuniversity.com/oua-starter/
It is hard to say if the biggest of the volatility swings are over, but the range has narrowed to within a few dollar range from the high 20’s to low 30’s. The CBOE Volatility Index (VIX) has settled near 26, or about half of last week’s fear spike. Even these lower levels are significantly higher than the typical sub 20’s levels of the last few months.
OVERSEAS: Key Chinese markets such as Hong Kong and Shenzhen remained weak with both dropping over 1%. However the weakness was not weak and broad across Asia as the Nikkei, for example, managed to have a positive day. Europe showed broad strength as the latest PMI numbers show that Euro Zone business growth is at a 4-year high.
OIL: Crude inventories have surprisingly increased again as production remains high, China’s economy slows down, and summer driving season winds down. The resultant oil prices have also dropped recently to about $46 per barrel after briefly spiking from multi-year lows in the high 30’s.
JOBS: The U.S. weekly jobless claims number was disappointing, coming in at 282K new claims verses an expectation of only 275K claims. The recent weakness in oil has led to layoffs among other factors. The ADP Employment Report was also weak as payrolls were expected to increase at 210K, but came in only at 190K.
CONSTRUCTION: Construction spending rose 0.7% in July, more or less in line with expectations. Private residential growth was stronger than business commercial growth.
BIOTECH INSIDER: Despite recent broad selling pressure, there is still a great number of biotech trading opportunities. In fact, on September 11, 2015, an FDA panel will review Collegium Pharmaceuticals’ Xtampza ER – an abuse-deterrent analgesic for the treatment of chronic pain. As the date approaches, there is potential for the stock to appreciate from current oversold conditions on positive Phase III clinical trial results. The study was found to meet its primary endpoint, which showed a statistically significant difference in average pain intensity from Randomization Baseline to Week 12 between the Xtampza ER and placebo groups, according to the latest press release. “All sensitivity analyses of the primary endpoint were also statistically significant. Xtampza ER had an adverse event profile consistent with other opioids, was well tolerated, and no new safety concerns were identified.” To get access to similar biotech opportunities, visit: http://optionswealthinsiders.com/biotechv2/
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