OptionsHouse

Options Trading News

April 25, 2013  Thu 7:13 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are rising for a fifth straight day, lifted by strong earnings and a lack of bad news.

S&P 500 futures are up almost half a percent, while most European indexes are posting similar gains. Asian markets also inched higher overnight.

Strong bullish momentum from the first-quarter's 10 percent rally seems to be the main catalyst supporting equities. Huge stockpiles of cash accumulated in bonds over the last four years have been flowing into stocks since the fourth quarter, keeping pullbacks shallow--even as economic data points to slowing in the last month.

Corporate earnings season has also given investors reasons to buy. One theme that's been emerging this quarter has strength in new technology sectors--especially semiconductors and fiber-optic devices. Software companies, on the other hand, have been weak.

Conservative plays such as health care and consumer staples had led the market in February and March, but our proprietary researchLAB analysis tool has shown increased risk appetite over the last week as energy and materials outperform, while health and staples lag. Small caps have also been strong in the last week, despite underperforming over the preceding month.

The S&P 500 has been consolidating around the same levels where it peaked in October 2007. Other key benchmarks such as the Dow Jones Transportation Average, Dow Jones Industrial Average, and Russell 2000 have already broken out to new record highs.

http://www.optionmonster.com/news/article.php?page=pmc/earnings_remain_dominant_on_calendar_80874.html
The economic agenda is light today, with weekly jobless claims at 8:30 a.m. ET as the main release. Tomorrow is more active, with first-quarter gross domestic product and consumer sentiment both scheduled.

Commodities paint a bullish picture today as copper gains another 1.3 percent, following a strong rally yesterday. The metal, often viewed as a bellwether for the global economy, had fallen to a 52-week low earlier in the week. Oil is up slightly and precious metals are higher by more than 1 percent. Agricultural foodstuffs are positive as well.

Weakness for the U.S. dollar is the main theme in foreign-exchange markets, as the euro, Australian dollar, Canadian dollar, and Japanese yen all appreciate against the greenback. Interestingly, the yen is down against other currencies, which is potentially bullish because it means that both "safe havens" are getting sold.
Share this article with your friends


Related Stories

SPX

Stocks rise before ECB statement

March 5, 2015

S&P 500 futures are up 0.2 percent and at their highs of the morning. Most indexes across the Atlantic gained 0.5 percent. China was the big mover overnight in Asia, dropping about 1 percent.

SPX

ECB meeting dominates calendar

March 5, 2015

Investors will be focused on the pace of quantitative easing after the stimulus measures that were announced in January. The news could have significant impact on U.S. interest rates and oil.

SPX

Stocks inch lower before key data

March 4, 2015

S&P 500 futures declined about 0.3 percent and are attempting to hold support at their mid-February highs. Europe is little-changed, and Asia was mostly lower overnight.

SPX

ADP labor report tops busy calendar

March 4, 2015

The employment number at 8:15 a.m. ET and is expected to show that 220,000 jobs were added in February. That would compare with growth of 213,000 in December.

SPX

Stocks hovering near record levels

March 3, 2015

S&P 500 futures are down about 0.1 percent, matching the small declines in Europe. Asia was mostly lower overnight as profit-takers knocked China down 2 percent. Oil is higher.

Invest Like a Monster - Las Vegas: March 13-14

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

View more education articles »