Turmoil overseas is slamming global markets with the epicenter of the earthquake in China. For the second time in the last week, China’s stock market once again hit its 7% down “circuit breaker” that caused trading to be halted. Dow futures are off triple digits once again, and the S&P 500 has broken out to new 55 day lows. Lower highs, and lower lows confirm that the broader markets are now officially in a downtrend. What to do now??? Go here: http://www.optionsuniversity.com/curriculum/2016/
The CBOE Volatility Index (VIX) has trended up back into the 20’s. A sharp drop in the markets today could cause a spike near the most recent high of 27 back on 12/14. U.S. Economic Data has been largely pretty solid. FOMC Fed Minutes indicate that the decision to raise interest rates last month was a “close call” primarily because inflation remains quite muted. Did you know that you can actually trade options on volatility? To learn more, click here: http://www.optionsuniversity.com/options-academy-online/
OVERSEAS: Shanghai has led the Asian markets on the downside, with the Nikkei off over 2%, and Hong Kong down over 3%. Chinese market regulators are under scrutiny for having such tight criteria for trading stops, as well as restrictions on larger selling action. European markets are also down across the board in the 2-3% range. A “dangerous cocktail” is how the U.K.’s Chancellor described the global risks to the improving U.K. economy.
OIL: Despite a 5-Million-barrel reduction in inventories this week, it is largely understood that warm weather and other factors are reducing the demand side for oil. Refineries are expected to throttle back production, and prices have dropped to about 33. Turmoil between Saudi Arabia and Iran has done nothing to cause prices to spike, and the U.S. has now begun exporting oil to the rest of the world. Courtney Smith is among the best in the business at evaluating global markets. To hear what he has to say, click here: http://www.optionsuniversity.com/tradesmith-video-newsletter/
JOBS: New Jobless Claims were down 10K over the previous week, but still higher than expectations at 277K new claims versus an expectation of 272K. Fluctuations in employment near around the holidays. The overall consensus is that the U.S. labor market is slowly improving, as backed up by the very strong ADP Employment report this week:
BIOTECH INSIDER: Shares of ACADIA Pharmaceuticals (ACAD) pulled back about 13% on Wednesday on news of a proposed public offering of $300 million worth of its common shares. But this may be a great buying opportunity, as the company heads into a much-anticipated meeting with the FDA this May 2016. It’s Parkinson’s disease Psychosis drug was fast-tracked late last year… This drug has multi-billion-dollar potential upon approval, note analysts. To gain further expert insight on biotech opportunities, please visit: http://optionswealthinsiders.com/biotechv2/. And to get further information on just how profitable biotech investing is, you may view a free educational video here: http://www.optionsuniversity.com/blog/biotech-big-money-secrets-recording/
The post China slammed again! appeared first on .