OptionsHouse

Options Trading News

June 19, 2013  Wed 7:12 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
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

SPX

Stocks trying to recover from selloff

January 29, 2015

S&P 500 futures were up 0.5 percent but are now up just slightly. Europe has also surrendered earlier gains. Japan and China both fell more than 1 percent overnight.

SPX

Jobless claims, earnings on docket

January 29, 2015

Initial unemployment filings, the first item on this side of the Atlantic, are expected to show a reading of 301,000, compared with 307,000 in the previous period.

SPX

Stocks rally on earnings before Fed

January 28, 2015

S&P 500 futures are up 0.4 percent, while strong earnings from Apple have lifted the Nasdaq 100 more than 1 percent. European indexes are modestly lower, and Asia was little-changed overnight.

SPX

Fed meeting, earnings top calendar

January 28, 2015

Economists expect the central bank to leave monetary policy unchanged, but it's not clear how traders will react to the statement.

SPX

Stocks fall sharply on poor earnings

January 27, 2015

S&P 500 futures are down 1 percent, while European indexes have fallen 1 to 2 percentage points. Asia was mixed overnight, with Tokyo gaining almost 2 percent and Mumbai up 1 percent.

OptionsHouse

Premium Services

Archived Webinar

Option Money Machine Winter Classic

Education & Strategy

The rolling technique

In the January 7th edition of Advantage Point, we initiated the purchase of a second week-out GOOGL 535 put at...

View more education articles »