OptionsHouse

Options Trading News

March 12, 2014  Wed 7:16 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are pulling back from long-term highs this morning as traders take profits and worry about weakness in China.

S&P 500 futures are down about 0.25 percent, and most European indexes are down more than 1 percent. Asia was also negative, led by a 2.6 percent drop in Tokyo and a 1.7 percent slide in Hong Kong.

The S&P 500 has inched lower the last two sessions following an outside "spinning top" on Friday, when the index made a new high but also trading below the previous session's low. That could make some chart watchers expect a pullback.

Stocks rallied last month on optimism about improving growth in the United States and Europe, but momentum has slowed this week amid few economic data releases. Attention is now focusing on softness in China and the looming referendum in Crimea this Sunday. Copper, viewed as a proxy for Chinese manufacturing and construction, fell sharply in the overnight session.

The only headlines scheduled for today are weekly mortgage applications and crude-oil inventories. Tomorrow's calendar brings Chinese industrial production, initial jobless claims, and monthly retail sales.

Financials and transports, which had lagged the broader market earlier this year, are the only two sectors to climb in the last week. Utilities and energy have remained the weakest areas.

In company-specific news, Express is down 16 percent after earnings and guidance lagged estimates. The report was consistent with poor results elsewhere in the retail industry. VeriFone Systems surged 11 percent after profit and revenue beat consensus.

Copper has rebounded from its overnight lows and is up 0.5 percent. West Texas Intermediate crude oil fell 1.6 percent while Brent crude is down 0.6 percent, a differential that potentially favors refinery stocks. Gold and silver advanced almost 1 percent.

Currencies are modestly bearish, with the safe-haven Japanese yen up across the board and the risk-correlated Australian dollar lower. The euro, however, is pushing higher against the U.S. dollar.
Share this article with your friends


Related Stories

SPX

Stocks drifting at bottom of range

March 27, 2015

S&P 500 futures are off 0.1 percent, while European markets are mostly higher. Asia was mixed overnight. Oil and metals are under pressure as the euro surrenders some of its recent gains.

SPX

Revised GDP, Yellen lead calendar

March 27, 2015

The final reading of fourth-quarter gross domestic product is due at 8:30 a.m. ET, and Federal Reserve Chair Janet Yellen is slated to deliver a speech at 3:45 p.m. ET.

SPX

Stocks fall amid Yemen airstrikes

March 26, 2015

S&P 500 futures are down 0.7 percent, while the Nasdaq remained weaker with a drop of 1 percent. European indexes slid 1-2 percent, and Asia was broadly lower overnight. Oil and the yen are surging.

SPX

Jobless claims lead quiet calendar

March 26, 2015

The report at 8:30 a.m. ET is expected to show that 290,000 Americans sought unemployment benefits for the first time, down slightly from 291,000 the previous week.

SPX

Stocks edge lower, drifting in range

March 25, 2015

S&P 500 futures are down 0.1 percent as investors wait for the next catalyst. European stocks are lower as well, while Asia was little-changed overnight.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Short Gamma

Last week, we talked about long Gamma. We said that long gamma is acquired by purchasing options and when you...

View more education articles »