The S&P 500 has tested and bounced off of a critical support area near 1820. Correlation between oil prices and the stock market is unusually high, and could possibly decouple as the attention turns to earnings. While there have been disappointments with key stocks such as Apple, a big earnings success from Facebook just announced could help to jumpstart optimism. The Fed said little and did nothing yesterday as a result of the FOMC meeting, as the future of rate changes remains uncertain for now. To learn how to trade options in any kind of market condition, go here: http://www.optionsuniversity.com/curriculum/2016/
The CBOE volatility index (VIX) had large swings intra-day between roughly 20 and 27, before finally settling near 23. Markets surging and dropping before and after the Fed discussions played temporary havoc with the “fear” index. Mostly positive action in recent days has brought the VIX down off of the recent high of 32. Rapid changes in volatility can be profitable. 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 mixed overnight, but highlighted by notable drops in both Shanghai and Shenzhen market, down nearly 3 and 4% respectively. Nikkei shares remain soft, but are off of their lows for the year. Japan’s economy minister has stepped down amid allegations over bribery, and his replacement is expected to carry forward the current stimulus plan. The European markets were down across the board with the Dax off about 1.5%. The U.K. growth figures were as expected, but have been weak for the year.
OIL: Russia has agreed to engage in talks with Saudi Arabia and other OPEC countries regarding possible production cuts. The news was enough to drive oil prices up to $34 a barrel. Nigeria and Venezuela are likewise calling for production cuts. Still, inventories remain high as 8.4 Million barrels were added to stockpiles last week. To hear what Courtney Smith has to say about oil and other opportunities, click here: http://www.optionsuniversity.com/tradesmith-video-newsletter/
JOBS: Jobless claims came in better than expected at 278K new claims versus an expectation of 285K. This is also significantly lower than the 294K from the prior week. There have been recent concerns that a recession is possible this year, so the improvement may be welcome news to some.
BIOTECH INSIDER: Biotech trading has become one of the most profitable ways to make money in the markets, and also surprisingly predictable. Not only can we trade the anticipatory build of expected momentum months ahead of key decisions on FDA news, advisory panel date, Phase I, II and III, and PFUDA news; we can also trade the most lucrative of value opportunities. In fact, as we speak, more than 52 of the most well respected biotech and pharmaceutical stocks have found themselves at new lows. Investors sold giants in the field mostly just because of the correction in the broader markets. One of those stocks just happened to be Johnson & Johnson (JNJ), which we just recently recommended as a buy with both the stock and call options. Just two days into the trade, the stock has already jumped more than $5, handing our students some of the easiest of gains. We have more opportunities next week. To learn more about our newest weekly insights, click here: https://cydec.com/cydec/cart/cof.php?Xjdv9VV7szvI
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