Options Trading News

June 19, 2013  Wed 7:12 AM CT

Equities are little-changed this morning after a strong close yesterday as investors brace for the Federal Reserve's announcement at 2 p.m. ET.

Most European indexes are fractionally lower and near their lows of the session. Asian markets were mixed in the overnight session as Japan's Nikkei gained almost 2 percent but China fell about 1 percent.

The S&P 500 peaked at 1687 on May 22, only to retreat as investors worried the Fed would reduce monetary stimulus measures. It found support earlier this month at its 50-day moving average and has now been muscling higher since. The index climbed steadily yesterday, ending the session up 0.78 percent.

Perhaps more importantly, its 10-day moving average is now climbing for the first time this month--suggesting that short-term momentum is turning bullish again.

Our proprietary researchLAB market scanner also shows outperformance over the last week in economically sensitive sectors such as energy, industrials, and consumer-discretionary stocks. That indicates that investors expect further economic growth later this year.

After the Fed today, tomorrow will be the week's busiest session of economic releases. It starts early in the morning with Chinese manufacturing numbers, European service-sector data, and then initial jobless claims in the United States.

There is very little volatility in foreign-exchange or commodity markets so far today. Oil, copper, the euro, and Australian dollar are fractionally higher. But the Japanese yen, which tends to move in the opposite direction as stocks, is also up slightly.

In company-specific news, FedEx is roughly flat after reporting better-than-expected profit but revenue that lagged estimates. Adobe Systems is set to rally 6 percent as customers embrace its new online revenue model, resulting in strong quarterly results.

Dell could also be active after billionaire investor Carl Icahn increased his stake in the computer maker and urged the company to buy back shares rather than accept a takeover by led by founder Michael Dell.
Share this article with your friends

Related Stories


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.


Stocks drop after weak jobs report

October 2, 2015

S&P 500 futures are down more than 1 percent after non-farm payrolls missed forecasts. Bonds and gold moved higher.


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 »