OptionsHouse

Options Trading News

June 11, 2013  Tue 7:13 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stock futures are lower today as buyers pause following a sharp rally late last week.

S&P 500 futures are down almost 1 percent, while indexes are lower by almost 2 percent in Europe. Both have been climbing from earlier lows in the last hour. China and Japan declined by more than a full percentage point in the overnight session.

Some attribute the drop to the Bank of Japan failing to announce measures against market volatility, but the more likely explanation is that the S&P 500 had stalled at the same 1640 area that was support in late May and has now become temporary resistance.

We appear to be entering a phase of consolidation after seven months of straight gains, with every major index except the Nasdaq 100 in record territory. A lot of good news has already been priced into stocks, and there are few known catalysts in the near term with the potential to push the market out of its current range.

One unknown today is a court hearing in Germany, featuring challenges to the European Central Bank's bond-buying program. The market, so far, expects the judges to side with the ECB. After that, the next big event is the release of U.S. retail sales on Thursday morning.

Commodities are following the bearish pattern as oil, copper, and silver fall more than 1 percent. Gold is also down almost a full percentage point, and agricultural products are mixed. The tone is similar in foreign-exchange markets, with the safe-haven Japanese yen up almost 2 percent against most other major currencies. The Australian and Canadian dollars are also tanking against the greenback.

Despite the moves, however, the yen is well below its highs from last week and appears to be consolidating. That's important because declines in the Japanese currency have been a key factor supporting risk appetite globally all year.

In company-specific news, Lululemon Athletica is down 13 percent after CEO Christine Day announced she was leaving the company. The drop comes despite quarterly results beating expectations.

Corinthian Colleges fell more than 20 percent after revealing it was under investigation by the Securities and Exchange Commission, which is seeking information on student recruitment, attendance, completion, and placement.

Pharmacy-benefits company Catamaran, on the other hand, is rallying 14 percent after winning a key contract with Cigna. 
Share this article with your friends


Related Stories

SPX

Stocks retreat following big surge

August 28, 2015

S&P 500 futures are down 0.7 percent, matching the declines in Europe. Asian markets were positive overnight, with Shanghai rallying 5 percent and Tokyo up 3 percent.

SPX

European, spending data on tap

August 28, 2015

European indexes covering the industrial, business, and consumer sectors are due early in the session and could have some impact on trading.

SPX

Strong GDP boosts stocks further

August 27, 2015

S&P 500 futures rose 1 percent, resuming their rebound after economic growth and jobless claims beat estimates. Europe gained more than 2 percent, and Shanghai surged 5 percent.

SPX

Revised GDP takes center stage

August 27, 2015

The Commerce Department is expected to report that the economy expanded 3.1 percent between April and June, up considerably from its early 2.3 percent growth estimate.

SPX

Stocks try to rally again after selloff

August 26, 2015

S&P 500 futures are up 2.4 percent, adding to gains after durable-goods orders beat estimates. Europe also recovered. Asia was mixed, with Shanghai down again but Tokyo rallying about 3 percent.

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

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »