Major U.S. markets have now settled into a lower level range with current pricing near the middle of that range. On the S&P 500, the bottom of the range is the precarious multi-year lows near 1810. It would be very dangerous to test those lows again any time soon. The upper end of the range is near 1950, which was breeched early in the year and has held as resistance ever since. Earnings this quarter have been weak, so it will likely take a rally in oil and/or a continued accommodative Fed policy to drive the market above the current range. Option traders know how to make money in choppy markets. To learn how to trade options, go here: http://www.optionsuniversity.com/curriculum/2016/
.
With somewhat improving sentiment in the most recent rally, the CBOE volatility index (VIX), dipped below 20 briefly before settling just above 20. In 2015, the VIX spent most of its time below 20, and above 20 for most of 2016. In this election year with several domestic and global factors in play, it is possible that the higher levels of volatility could be the new norm. Things may get interesting with the next Fed meeting scheduled for March 15th and 16th. Economic data has not been strong overall, and the global risk of recession remains, fueling speculation that the Fed will pause interest rate increases. 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: The Nikkei has bounced off of recent lows and rallied over 1% in overnight action. Major Chinese markets, on the other hand, got ripped lower with Shenzhen down over 7% and Shanghai over 6%. These are major moves even for the relatively volatility Chinese markets. Currency instability is a major issue affecting Chinese industry, along with slowing economic growth.
OIL: Crude inventories remain at extremely high levels, but plans for global production freezes have brought some level of stability to oil prices. After some up and down gyrations, the price of WTI Crude has settled just under $32 per barrel. While it may be some time before oil prices rally strongly, the lack of severe recent price drops is a welcome relief for major market indexes. 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: After two strong jobs reports in a row, the latest Jobless Claims report was a bit soft. 272K new claims were filed this week compared to an expectation of 270K. This was also higher than the previous week’s figure of 264K. On the bright side, however, claims have been under 300K every week for the last 12 months or so.
BIOTECH INSIDER: After more than five years of beating the major indices, biotech has taken a hit in the early days of 2016, as have most stocks and indices in the U.S. But biotech company insiders have found a silver lining in the decline, picking up shares of their own companies on the cheap. In fact, since September 2015, insiders have bought more than 2.08 million shares of Array Biopharma (ARRY) between t $3.19 and $$4.67 a share. Another one of the top biotech investors on the Street, the Baker Brothers, just bought 3.138 million shares of Incyte Corporation (INCY) between $61.93 and $70.72 a share for $205 million. And insiders bought another 4.883 million share of Xenoport Inc. (XNPT) for $19 million. All point to potential upside on the heels of very bullish insiders. Even though biotech may be down on the year so far, don’t count out the sector. It’s very likely to outperform the broader markets yet again. For more information on similar stocks in the explosive biotech arena, click here now: https://cydec.com/cydec/cart/cof.php?Xjdv9VV7szvI
The post China markets plunge appeared first on .