Options Trading News

May 7, 2013  Tue 7:14 AM CT

Stocks are climbing again today as momentum remains with the bulls.

S&P 500 futures are up more than two-tenths of a percent and have been gaining in the last hour, while European indexes are advancing by half a percent or more. Germany's DAX has reached a new all-time peak, fueled by strong industrial orders. Asian markets were also bullish overnight as Japan's Nikkei surged 3.5 percent to its highest level in almost five years.

Comforted by an improving global economy, money continues to shift from conservative fixed-income investments and into equities. The S&P 500 is only about 2 percent above its previous highs, suggesting that significant support would be found on a pullback into the 1590s. That could give investors comfort that there is relatively little downside risk.

The German industrial numbers were also impressive, showing orders up by 2.2 percent in March, while economists had expected a drop of 0.5 percent. There are few other economic headlines this week, which could also support a drift higher. Thursday is the busiest day, with April same-store sales and initial jobless claims on the agenda.

Activity in the foreign-exchange market is mostly bullish as the U.S. dollar falls against the euro and the Canadian dollar. Japan's yen is higher against the greenback but lower against the euro, and the Australian dollar is falling on a rumor that billionaire investor George Soros is betting against it.

Commodities are negative as oil and silver drop by more than half a percent, while gold and copper shed one-third of a percent. Agricultural products are mixed.

In company-specific news, Anadarko Petroleum is indicated to climb about 1.6 percent after its results beat expectations and management raised guidance. Aruba Networks is down 17 percent after cutting guidance. Nationstar Mortgage gained more than 6 percent after reporting strong results and beating estimates. Financials such as Bank of America and Citigroup are indicated slightly higher, as well, after leading the market to the upside yesterday.

The broader price action has also been bullish over the last week as aggressive segments of the market such as transports and small caps outperform more conservative large caps.
Share this article with your friends

Related Stories


Mortgage data tops quiet agenda

October 7, 2015

Weekly mortgage applications are the first U.S. event at 7 a.m. ET, followed by crude-oil inventories at 10:30 a.m. ET. Consumer-credit numbers are due at 3 p.m. ET.


Stocks pause after quick bounce

October 6, 2015

S&P 500 futures are down 0.2 percent, while Europe is fractionally higher. Asia rose 0.5-1 percent overnight, though Chinese markets remain closed for a holiday.


PepsiCo earnings on slow docket

October 6, 2015

PepsiCo announces quarterly results before the opening bell and Yum Brands follows in the afternoon. The Commerce Department releases the U.S. trade balance for August.


Stocks keep upward momentum

October 5, 2015

S&P 500 futures are up 0.7 percent, while most of Europe is up 2-3 percent. Asian markets rose 1-2 percent overnight.


ISM services lead quiet agenda

October 5, 2015

The agenda quiets this week, though quarterly earnings will begin to flow. European retail sales are the first event early in the session and may have affect sentiment.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »