tradeMONSTER: Trade free for 90 days

Options Trading News

June 26, 2013  Wed 7:13 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are higher again today as investors take advantage of the recent pullback to get long.

S&P 500 futures are up more than 0.6 percent and near their highs of the session at the time of this writing, while most European indexes are up 1.5 percent to 2 percent. Asia was mixed overnight as Hong Kong rose but a strong Japanese yen weighed on the Nikkei.

The S&P 500 gained almost 1 percent yesterday, attempting to rebound from a one-month slide. The pullback brought the index back to its 100-day moving average and the same 1560 area where it struggled in March. This suggests that old resistance has become support, which is potentially bullish.

Strong economic data also boosted sentiment: Durable-goods orders, home prices, consumer confidence and new home sales all beat expectations yesterday. We now enter a period of few headlines, leading up to the Institute of Supply Management's key manufacturing index on Monday and monthly employment data at the end of next week. Markets will also be closed on Thursday, July 4, and attention will turn to corporate earnings after the holiday.

Treasury bond yields are falling today, which could also support bullish sentiment. They had surged in the last month on signs the Federal Reserve will reduce asset purchases. Equities that would benefit from lower yields, such as utilities and real-estate investment trusts, have also started to rebound drops from big drops in the last three sessions.

In an interesting note yesterday, Merrill Lynch classified 43 of 45 global markets as "oversold." Brazil (EWZ), Turkey (TUR), South Africa, Mexico (EWW), and the materials sector (XLB) were identified as the cheapest.

Precious metals are making the big move in commodities today, with gold down more than 3 percent and silver plunging almost 5 percent. Oil is slightly lower and copper fell 1 percent.

The strength in equities is somewhat remarkable given the move in foreign-exchange markets today, with the euro down and the Japanese yen higher. The Australian and Canadian dollars are gaining, however, which could bode well for global risk appetite.

In company-specific news, touch-screen maker Synaptics is indicated higher after raised its revenue guidance for the current quarter. Handgun maker Smith & Wesson is also up after reporting strong quarterly results.
Share this article with your friends


Related Stories

SPX

Cramer: Tune out Fed naysayers

December 19, 2014

When we have inflation, the data-dependent Fed will switch. Until then, what's the point? Promote havoc? Slow down growth to make it so the hiring binge is over?

SPX

Stocks inch higher following rallies

December 19, 2014

S&P 500 futures are up 0.2 percent but below their highs earlier in the morning. Asia surged overnight, led by gains of about 2 percent in Tokyo and Shanghai. Oil is holding its ground as well.

SPX

Earnings reports fill quiet calendar

December 19, 2014

The only items today are quarterly results from CarMax, Carnival, and BlackBerry. Several events are packed into Tuesday and Wednesday because of next week's Christmas holiday.

SPX

Stocks rally again on Europe, oil

December 18, 2014

S&P 500 futures are up more than 1 percent, while most European indexes are gaining 2 percent. Asia was mostly higher overnight, led by a 2 percent gain in Tokyo.

SPX

Jobless claims, Philly Fed on tap

December 18, 2014

Today's economic calendar features initial jobless claims and the Philadelphia Federal Reserve's regional-activity index.

tradeMONSTER: Trade free for 90 days

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER