Just as it looked as though a big V-shaped recovery in the markets may be in the cards, the last week has brought a second slump. Yesterday’s intra-day rally ended with a thud with markets closing near session lows, and futures looking decidedly negative. Key lows that have held since 2014 are being threatened once again, as we markets remain mired in a historically terrible start to 2016. Option traders don’t mind negative or 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, slumped at first and is now looking like it may retest that level again. This past week showed a bounce off of 19.50 to rise up to 26.29, and will likely go higher. Sentiment is in the “extreme fear” range. Pundits are no help with alternating comments about whether the selling is over, or has just begun. Investors were looking to Janet Yellin’s comments to assuage the fear, but the relief wasn’t there…just more uncertainty. Yellin remains open to every possibility, including negative interest rates. 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, both European and Asian markets got hammered. The Nikkei is in a freefall. China’s banks face a huge credit crisis if their assets decline during a slowdown. European and U.S. banks also face problems as a result of the decline in oil among other factors. The key difference is that U.S. banks (since the mortgage crisis) are now in a much better cash position than before, and the U.S. currency is stronger.
OIL: Crude inventories actually went down by 800K barrels this past week, but remain at extremely high levels. Gasoline inventories increased. The price of oil continues to weaken to $26 per barrel. Russia has signaled that it may be agreeable to a “coordinated” cut in oil production if OPEC and other major producing nations are willing to cooperate. 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: New jobless claims numbers came in much better than expected at only 269K compared to a 281K expectation. This was also much lower than the prior week’s 285K posting. By most measurable accounts, the U.S. labor market is tightening.
BIOTECH INSIDER: The last time we saw an opportunity like this, Arbutus Biopharma skyrocketed more than 600% on the Ebola outbreak. When SARS was making headlines, Alpha Pro Tech returned more than 230%. When the bird flu outbreak hit headlines in 2013, Biocryst rallied more than 300%. Nowadays, the hottest virus to hit the headlines, spreading fear through the masses is the zika virus… and it’s spreading fast, putting the 2016 Brazil Olympics in jeopardy, too. As President Barack Obama asks Congress for up to $1.8 billion in emergency funding to fight the zika virus, we just recommended four stocks that could see similar returns. In fact, Intrexon (XON) has already returned up to 20% for students in less than a week. But it’s only getting started, as the Centers for Disease Control and Prevention announce that emergency operations have been put on “Level 1” status. That’s the highest level since the outbreak of Ebola, H1N1 and Hurricane Katrina… That means related stocks have to be bought now… or you risk missing out on the next big run. Our own biotech expert, Ian Cooper recommended four of the stocks likely to run higher on the virus outbreak, including Intrexon. 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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