OptionsHouse

Options Trading News

June 17, 2013  Mon 7:12 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are gaining this morning after making a higher low on Friday.

S&P 500 futures are up more than half a percent but have retreated from earlier levels, while European indexes are gaining more than a full percentage point. Perhaps most important was a rally of almost 3 percent in Tokyo as the Japanese yen showed signs of stabilizing.

The S&P 500 bounced at its 50-day moving average last week and closed Friday's session above the key 1523 level that was support earlier in the month. The price action suggests that there few sellers who want to exit stocks after the index held support above its previous all-time highs. There was some evidence in recent sessions that hedge funds were trying to drive equities lower, but now the bears appear to be in retreat.

The Federal Reserve's interest-rate decision on Wednesday afternoon is the main item on the calendar this week, though German economic sentiment, U.S. housing starts, and consumer prices will be released tomorrow morning. Today brings two minor releases: homebuilder sentiment and the New York Fed's Empire manufacturing index.

Attention will mainly center on how aggressively the Fed plans to scale back the pace of monetary easing, though investors have had more than a month to accustom themselves to the idea of a less accommodative Fed. The even bigger story now seems to be continued signs of U.S. economic recovery, demonstrated by last week's strong jobless claims and retail-sales data. Reports this morning also showed robust wage and export growth in Germany.

Commodities and currencies are surprisingly tepid given the move in stocks. Oil rose by half a percent but copper is down by a similar amount, while agricultural products and precious metals are weak. The euro is also modestly lower. The Japanese yen is down across the board and is back to a potentially important level against the U.S. dollar from February.

The gains, however, are smaller than one might expect given the big move in the Nikkei index. This suggests that equities are returning to favor on a secular basis, marking a contrast with the 2003-2008 bull market for commodities. The Australian dollar also continues to rebound from multiyear lows.

Few stocks are moving on company-specific news. Wednesday is only session this week with significant earnings announcements, featuring names such as FedEx, Finisar, Jabil Circuit, Micron, and Red Hat.
Share this article with your friends


Related Stories

SPX

Stocks lower following big bounce

August 31, 2015

S&P 500 futures are down 0.6 percent but have cut their losses in half. Most of Europe has fallen about half a percent. Asia was mixed, with Tokyo and Singapore down about 1 percent.

SPX

Chicago PMI kicks off busy week

August 31, 2015

Today's main event is the Chicago Purchasing Managers Index at 9:45 a.m. ET. The Dallas branch of the Federal Reserve follows with its regional index at 10:30 a.m. ET.

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.

OptionsHouse

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 »