To the great relief of many, the S&P 500 has found double-bottom multi-month support in the low 1800’s, and has since dramatically rallied well above 1900 with four strong positive days in a row. Large gaps upward with strong closes has brought the index close to the most recent significant high near 1945. The Russel and the Nasdaq have likewise rallied strongly over the last few sessions after each formed a recent lower low. 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, has dropped off nearly 10 points as market sentiment has brightened dramatically. Janet Yellin’s Wednesday FOMC Meeting Minute comments did nothing to stem the tide as she admitted that the threat of economic slowing could be enough to cause the Fed to rethink a path of higher interest rates. Rising oil prices and prospects for European easing has also brightened the big picture mood surrounding the major U.S. markets. 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 overnight were strong across the board with the exception of Chinese industrial markets (Shanghai and Shenzhen) which were flat. The Nikkei led the way with a relief rally of over 2%. European markets were likewise positive with the exception of the FTSE, which was off just fractionally. Britain is struggling with the decision of whether or not to stay in the European Union. Prince William and Prime Minister Cameron have spoken in support of remaining in the union, but our foreign correspondent has indicated that there is strong support on both sides of the issue.
OIL: An agreement to freeze production at January levels has been reached among OPEC nations and Russia. Iran has also endorsed the agreement which has been widely received as a step in the right direction. Oil has since rallied several percentage points to north of $31 per barrel, as the correlation between U.S. markets and the price of oil remains. The latest report of oil inventories will be released later today. 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 at 262K new claims this week. This is 4K lower than the previous week and much lower than expectations of 275K. This makes for two strong jobless reports in a row, and may at least temporarily dampen fears for some who have expressed worry about the possibility of a recession.
BIOTECH INSIDER: Since the start of the year, the Dow lost up to 1,805 points, as the S&P 500 fell more than 200. More than $1.5 trillion was wiped out. Investors feared the very worst selling off some of the greatest, most profitable sectors we’ve ever seen, including biotech where the iShares NASDAQ Biotech (BB) lost up to 89 points. But as investor fear dies off, the smart money is racing back into biotech. Big companies are still on the hunt for smaller companies with new innovation and treatment options to help strengthen older pipelines. In fact, our biotech expert has his eye on several companies that are very likely to swing higher after the brutal sell-off, including ACADIA Pharmaceuticals with catalyst dates in March and May 2016. 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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