Markets have rallied nicely over the last week, with the S&P 500 breaking briefly above the psychologically key 2000 level, before falling back, and now looking as though it will break out again as a result of European Central Bank dovish action. Specifically, the ECB has cut the deposit rate and expanded its asset purchase program by more than 20%. The resulting U.S. market price of breaking above a key technical level opens the door for the markets to challenge previous highs. Option traders know how to get much larger returns using leverage. To learn how to trade options, go here: http://www.optionsuniversity.com/curriculum/2016/
Bullish sentiment has increased significantly during the rally, and fear has declined measurably. Bonds and safe equity investments are on the decline, as money is moving into slightly bolder stocks and other instruments. The CBOE volatility index (VIX) has been below 20 for seven straight trading days as a result. Next up? An FOMC Fed meeting scheduled for March 15th and 16th has the potential to have a big impact on the markets, and could temporarily increase volatility. Next week also brings a slew of economic data that will be watched closely. Otherwise, earnings season is winding down, oil is stabilizing, and we have entered strongly into one of the seasonally strongest two month periods of the year (March and April). Changes in volatility can be profitable, even when it goes down. 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 soft everywhere except Japan. The Nikkei was up over 1%, while major Chinese markets were off 1-2%. Economic export data out of China was disappointing, stoking fears of a potential China slowdown. In Europe, broad and big rallies carried the day as a directly result of ECB action. Draghi’s public comments about the ECB stimulus initiatives will dominate the news cycle for now.
OIL: Crude inventories remain at record high levels after an increase of 3.9 Million barrels this week. However, gasoline inventories actually dropped by even more (4.5 Million barrels), which allowed the price of crude to rally up into the high 30’s. A cap in production and an increase in gasoline demand during the upcoming summer driving season could help crude markets maintain their course. 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: U.S. Jobless Claims numbers improved significantly, coming in at 259K vs. an expectation of 272K. This is also much better than the 277K figure from the previous week. It will be interesting to see how this might affect the Fed’s upcoming decision on interest rates.
BIOTECH INSIDER: Never discount a virus story. Much like we saw with Ebola, SARS, and the bird flu outbreak in 2013, the Zika virus has already produced gains of 20% and 31% within weeks of us uncovering shares of Intrexon (XON)… just as we had hoped. But to understand why we would find XON attractive, you must first understand the psychology of the herd. As the story hit home in the United States and abroad, as government officials blared it was an emergency, people panicked, and companies were hot for a quick cure, creating some of the most incredible opportunities for investors hot on the trail of stocks that may have a cure. It’s why investors gravitated towards Intrexon. Reportedly, the company had acquired Oxitec over the summer, giving it access to numerous programs to meet unmet medical needs including the Zika virus. Our own biotech expert, Ian Cooper found XON attractive for investors as the stock began to run on fear. For more information on similar stocks in the explosive biotech arena, click here now: http://optionswealthinsiders.com/biotechv2/
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