The markets have been mostly positive this week with the S&P 500 fighting its way back to the top of its current range. The 2000 level has both technical and psychological resistance at this point, and time will tell if there is enough conviction and volume to power higher still. A down trending 50 day moving average has met up with the price action, to add to the technical resistance.
The CBOE Volatility Index (VIX) has fallen back below the important 20 level down to 18.39. Market sentiment remains bearish, but is markedly better than recent weeks, and very much better than a year ago. Seasonality suggests more flat to bearish action before entering into a more bullish period later this year. Options traders in particular can thrive in any circumstances. To learn how to trade them yourself with the very best education, click here: http://www.optionsuniversity.com/academy
OVERSEAS: In Asia, markets are strongly mixed with major industrial Chinese markets up big, and everything else, including the Nikkei, showing weakness. In particular, Shanghai and Shenzhen were up over 3% in a single day. The Trans-pacific trade pact (TPP) is being watched very carefully. European stocks are mixed and relatively flat across the board.
OIL: Oil prices have firmed up a bit, rising to $48 per barrel, despite inventories rising by over 3 million barrels. Decreasing demand from oil refineries has been offset by decreasing supply from overseas.
JOBS: Jobless claims came in lower than expected at 263K new claims this week, compared to expectations of 273K. The overall trend is continuing downward. Potential for impact of the jobs situation on interest rates will be watched closely as FOMC meeting minutes will be released later today.
BIOTECH INSIDER: While the biotech landscape has been marred in recent weeks by political speak, the biotech sector has still been hot over the last five years. The Biotechnology Index – up 216% — has dwarfed the 65% gains of the S&P 500. The 20-year trend is still firmly in place, that 32 million Americans now have coverage, and that there are still quality companies discovering new therapies or curing diseases with an unmet medical need. According to Ian Cooper, biotech expert, “Investors would be wise to shift focus to uncovering solid companies with strong pipelines while ignoring the noise of Wall Street”. Mr. Cooper has much more to say in this free biotech video: http://www.optionsuniversity.com/blog/biotech-big-money-secrets-recording/
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