On the heels of last week’s huge Friday surge, U.S. markets have mostly slumped. However, just when it seemed that the bears were going to take back all of the gains and then some, stocks staged a grand intraday turnaround finishing solidly in the green. The S&P 500 in particular is still showing a high correlation with oil prices, which remain fickle amidst high inventories, but hope of reduced supply from OPEC and other nations. Option traders don’t mind more volatile environments. 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), after peaking above 32 on January 20th, has been definitely trending down since then, and has settled at 21.65. Still, market sentiment remains very wary considering that the VIX spent most of 2015 below 20, and got as low as 10.88 last year. In this election year, many issues are in play, such as interest rates, China’s economy and currency, oil prices, recession fears, and European easing. 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: In overnight action, Asian markets did well everywhere except Japan, where the Nikkei continues to be in a bear market, retesting previous lows. In addition to economic concerns, Japan’s military is on high alert due to North Korea’s potential to launch a ballistic missile. European markets were mixed and relatively calm. The FTSE is up about half a percentage point. The Bank of England has decided to keep rates unchanged.
OIL: Crude inventories are at an all time high after adding another 7.8 Million barrels this week. Gasoline inventories increased as well, up 5.9 Million barrels. Rumors remain about possible supply slowdowns among OPEC nations, helping oil bounce back to about $32 per barrel after slipping below $30 again recently. 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: Job cuts have increased to a six month high, with most of the damage happening in the retail and energy sectors. Wal-Mart plans to close 269 stores and shed 16,000 workers. Jobless claims were expected to come in at 280K new claims this week, but the actual number was even higher at 285K. This is 6K higher than the previous week.
BIOTECH INSIDER: The Zika virus is spreading far and fast, posing quite a global health emergency, notes the World Health Organization (WHO). It’s already been linked to 4,000 cases of microphaly, where babies are born with under-developed brains. The Centers for Disease Control and Prevention (CDC) have already seen 11 confirmed cases in the United States. And experts warn another three to four million more cases could appear in the Americas this year alone. Reports in the Journal of the American Medical Association have also noted that the virus has, “explosive pandemic potential.” It’s just part of the reason our resident Biotech expert Ian Cooper recommended a buy on shares of Intrexon (XON) this past Monday morning. Reportedly, the company bought out a company called Oxitec over the summer, giving it access to numerous programs to meet unmet medical needs including the Zika virus. The stock has already gained notable attention after the recommendation… and could move considerably higher. For more information on similar stocks in the explosive biotech arena, click here now: https://cydec.com/cydec/cart/cof.php?Xjdv9VV7szvI
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