September 1, 2015 Market Wrap Up

September 2, 2015 tvcuser Education, Trading China, Data, Earnings, Economic, education, PFE, PMI, S&P 500, trading, USO, VIX, YELP

September 1, 2015 Market Wrap Up

The S&P 500 got absolutely smoked today, down nearly 3 percent. The market was weak overnight because of poor data out of China, PMI was worse than expected. Interestingly, the SPY straddle going into Monday was implying a 2.6% move. With that said, not too many traders were expecting this kind of volatility heading into Labor Day.

The VIX closed at 31.40, up more than 10%. Not only that, but the VIX remains in backwardation. This is when near term futures are more expensive than farther dated futures.

VIX Futures Term Structure

The energy sector saw a big sell-off after seeing recent gains. The United States Oil Fund (USO) is down nearly 9%.

August 31, 2015 The Week Ahead

August 31, 2015 tvcuser Education, Trading China, Data, Earnings, Economic, education, S&P 500, trading, VIX

August 31, 2015 The Week Ahead

The S&P 500 ended Friday’s action on a mild note, something that was probably unexpected given all the fireworks we had during the week. The market recaptured all of it’s losses from Monday and Tuesday’s sell-off on Wednesday and Thursday. We went from a low of 1867 to closing at nearly 1990. A massive swing in prices and volatility.

Many believe the catalyst was fears of greater weakness out of China. However, over the last few days, it appears that fear was overemphasized.

Just two weeks ago, the VIX was below 13, but it’s now been two straight Friday’s where it has closed above 25.

August 25, 2015 Market Wrap Up

August 25, 2015 tvcuser Education, Trading China, Data, Earnings, Economic, education, LNG, S&P 500, SCTY, trading, VIX

August 25, 2015 Market Wrap Up

The S&P 500 is down nearly 10% over the last few trading sessions. Today’s action was a punch to the gut for all the bulls; nearly an 80 pt swing from high to the low. The market gapped up very strong and stayed there for a good portion of the day. However, it gave it all back by the close.

All eyes will be on China to see how their markets open. They recently decided to cut their key interest rates, which was the catalyst for today’s short-lived rally. Maybe it’s because they’ve cut rates five times since November.

Believe it or not, the VIX dropped, closing at 36.02.

On the options front, we saw bullish call buying in Solar City (SCTY). We also saw bearish option activity in Cheniere Energy (LNG).

Here’s what else is going on:

Key Economic Data:
26 August 2015- Durable Goods 8:30 AM ET
27 August 2015- GDP 8:30 AM ET, Jobless Claims 8:30 AM ET
28 August 2015- Personal Income 8:30 AM ET

Key Earnings:
26 August 2015- EXPR, GES, NQ
27 August 2015- ARO, ADSK, BEBE, BURL, DG, GME, SDRL, GAME, SPLK, TIF, ULTA, VEEV, YGE, TD
28 August 2015- BIG

August 23, 2015 The Week Ahead

August 23, 2015 tvcuser Education, Trading China, Data, Earnings, Economic, education, Europe, S&P 500, trading, U.S., VIX

August 23, 2015 The Week Ahead

The S&P 500 ended Friday’s action with a wicked sell-off, dropping more than 3% and over 5% the last two trading days.

A strategy that has worked well over the last couple of years has been to buy the dip. However, every rally on Friday was eventually sold.

What caused this?

Sellers were more aggressive than buyers. It might sound too simple, but there was no real news to justify the move. Of course, that won’t stop the financial press and media try to come up with a reason why.

In any event, global markets now look weak. With Europe, China, and the U.S. now showing signs of slowing down.

Just a week ago, the VIX was below 13, on Friday, it closed at 28.03!

August 20, 2015 Market Wrap Up

August 20, 2015 tvcuser Education, Trading China, CPN, Disney, Earnings, education, Facebook, GLD, Merck, S&P 500, trading, Twitter, VIX

August 20, 2015 Market Wrap Up

The S&P 500 got absolutely destroyed today; despite no real news. Nonetheless, we were down over 2% and the VIX exploding up over 25% and closing at 19.14.

We saw big sell-offs in Facebook -5%, Disney -6%, Twitter -6%, and Merck -4.5%.

Of course, all eyes will be on China this evening for indication of how the U.S. Markets will open up.

One big winner today, was the precious metal gold. The SPDR Gold Shares (GLD), was up nearly 2%. Proving that during volatile markets, gold is still considered a safe haven. On the other hand, crude oil futures hit a multi-year low, down over 55% in 12 months.

On the options front, we saw bullish call buying in Calpine Corp (CPN). We also saw bearish option activity in Splunk, Inc.

Tomorrow is August options expiration.

Here’s what else is going on:

Key Earnings:
21 August 2015- DE, FL

August 18, 2015 Market Wrap Up

August 18, 2015 tvcuser Education, Trading China, DFS, Earnings, Economic, education, FOMC, IDTI, S&P 500, trading, USO, VIX

August 18, 2015 Market Wrap Up

The S&P 500 finished the day mildly lower; despite a sell-off in China last nite. Interestingly, some commodities like crude oil actually were up. Generally, weakness out of China has a negative effect on commodities. However, the United States Oil Fund (USO) was up nearly 1%.

The VIX was actually up a decent amount given the lackluster day; it was up nearly 6%, closing at 13.71.

On the options front, we saw bullish call buying in Discover Financial Services (DFS). We also saw bearish option activity in Integrated Device Technology Inc (IDTI).

Tomorrow could see better action, we’ve got earnings from Staples, Target, and Lowes to name a few. In addition, the FOMC will be releasing their minutes.

Here’s what else is going on:

Key Economic Data:
19 August 2015- Consumer Price Index 8:30 AM ET, FOMC Minutes 2:00 PM ET
20 August 2015- Jobless Claims 8:30 AM ET, Philly Fed Survey 10 AM ET, Existing Home Sales 10 AM ET

Key Earnings:
19 August 2015- TGT, LOW, SPLS, NTAP
20 August 2015- BRCD, CRM, GPS, HPQ, MSG, INTU, MRVL, ROST, TUES
21 August 2015- DE, FL

August 16, 2015 The Week Ahead

August 16, 2015 tvcuser Education, Trading China, Data, Earnings, Economic, education, FOMC, risk, S&P 500, trading, VIX

August 16, 2015 The Week Ahead

The S&P 500 ended Friday’s action on the plus side. However, there was a fair share of volatility, as we saw a 50 point range between highs and lows in the S&P 500 this week.

In respect to risk, market participants will be watching any further developments out of China. Their decision to devalue the Yuan caused the markets here to sell off. This in turn, saw the prices of many commodities tumble.

Despite all this volatility, the VIX is back below 13, closing at 12.83.

We’ve got earnings out of Home Depot, Wal-Mart, Target, Deere, and Hewlett-Packard to name a few. In addition, we’ll be receiving the FOMC minutes.

August 13, 2015 Market Wrap Up

August 13, 2015 tvcuser Education, Trading China, Data, Earnings, Economic, education, HIG, S&P 500, trading, URI, USO, VIX

August 13, 2015 Market Wrap Up

The S&P 500 finished the day lower; almost in opposite fashion as yesterday. The market was up strong in the pre-market after positive comments out of China. However, those gains withered away by the close.

The VIX actually dropped, closing at 13.49.

On the options front, we saw bullish call buying in The Hartford Financial Services (HIG). We also saw bearish option activity in United Rentals (URI).

The energy complex was weak again, the United States Oil Fund (USO) closed the day at $14.09.

Here’s what else is going on tomorrow:

Key Economic Data:
14 August 2015- PPI 8:30 AM ET, Industrial Production 9:15 AM ET

August 12, 2015 Market Wrap Up

August 12, 2015 tvcuser Education, Trading Apple, China, Conferences, Data, Earnings, Economic, education, HAS, NVS, S&P 500, Skyworks, Sunedison, trading, USO, VIX

August 12, 2015 Market Wrap Up

The S&P 500 finished the day higher; however, there was some heavy volatility that went with it. We saw nearly a 40 point swing from the high to low today. The market saw heavy selling pressure in the morning, a reaction to China’s back to back currency devaluation.

With that said, the VIX jumped above 16.25, but settled the day down, closing at 13.61.

We also saw some wild swings in stocks. For example, Apple moved nearly $6 off the lows, Sunedison $3 off the lows, and Skyworks Solutions rebounded $4 off the lows.

On the options front, we saw bullish call buying in Hasbro Inc (HAS). We also saw bearish option activity in Novartis AG (NVS).

The energy complex was weak again, the United States Oil Fund (USO) closed the day negative.

Here’s what’s else on tap for the rest of the week:

Key Economic Data:
13 August 2015- Jobless Claims 8:30 AM ET, Retail Sales 8:30 AM ET
14 August 2015- PPI 8:30 AM ET, Industrial Production 9:15 AM ET

Key Earnings:
13 August 2015- COTY, FLO, KSS, AMAT, JWN, KING, PRTY

Key Conferences:
13 August 2015- Jefferies Industrial Conference

August 11, 2015 Market Wrap Up

August 11, 2015 tvcuser Education, Trading ALLY, China, Conferences, Data, Earnings, Economic, education, FCAU, S&P 500, trading, USO, VIX

August 11, 2015 Market Wrap Up

The S&P 500 was down more than 1% today. Mainly a reaction to last night’s announcement out of China. They decided to devalue their currency, which put a ton of pressure on companies that export to China. For example, shares of Apple were down nearly 5%.

We saw weakness in Gopro -9%, Apple -5%, Sunedision -13%, to name a few.

With that said, it was no surprise to see the VIX jump over 12%, closing the day at 13.71. Now, a 13.71 VIX reading is not exactly screaming panic, with that said; we would need to see further selling pressure in order to see it move higher.

On the options front, we saw bullish call buying in Fiat Chrysler Automobiles (FCAU). We also saw bearish option activity in Ally Financial (ALLY).

The energy complex was extremely weak, the United States Oil Fund (USO), was down more than 3%. For the most part, we’ve generally seen airlines perform well on this weakness.