October 4, 2015 The Week Ahead

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October 4, 2015 The Week Ahead

The S&P 500 ended the week higher, making it four straight days after seeing a full week of selling, last week.

With that said, the VIX closed above 20, where it’s been for over a month.

One could argue we’ve simply bounced from extreme oversold conditions. Of course, with China on holiday, that helped take some pressure off the markets.

Crude Oil futures were relatively unchanged this week, as prices are trading slightly above $45 per barrel. Interestingly, we also saw a pop in precious metals futures on Friday. Gold futures traded more than 2% higher.

Earnings season kicks off on Thursday, here’s what else is on tap:

Key Economic Data:
6 October 2015- International Trade 8:30 AM ET
8 October 2015- Jobless Claims 8:30 AM ET, FOMC Minutes 2 PM ET

Key Earnings:
5 October 2015- TCS
6 October 2015- PEP, YUM
7 October 2015- MON, STZ
8 October 2015- DPZ, AA

Key Events:
5 October 2015 (runs till the 6th)- 18th Annual Cowen Therapeutics Conference
6 October 2015 (runs till the 9th)- Amazon Services Invent Conference

September 29, 2015 Market Wrap Up

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September 29, 2015 Market Wrap Up

The S&P 500 finished the day slightly higher, however; we gave up most of our gains and even went negative for a decent portion of the day. In fact, we hit lows that we have not seen since August 24.

The biotech sector is still reeling off the comments made by politicians, regarding the cost of drug prices and more regulation. The iShares Nasdaq Biotechnology Index Fund (IBB) is down over 10% in the last week.

The VIX was actually down, closing at 26.83. For now, it appears that 20 might be a new base level.

The energy sector was up today; the United States Oil Fund (USO) was up less than 1%.

On the options front, we saw bullish call buying in Burlington Stores Inc (BURL). Options that saw bearish put buying were in Lululemon Athletica Inc (LULU).

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

Key Economic Data:
1 October 2015- Jobless Claims 8:30 AM ET, ISM Manufacturing Index 10 AM ET
2 October 2015- Employment Situation 8:30 AM ET

Key Earnings:
29 September 2015- COST
1 October 2015- MU

Key Events:
29 September 2015 (runs till 10/1)- American Gaming Association Global Gaming Expo
29 September 2015 (runs till 9/30)- Wolfe Research Power & Gas Leaders Conference

September 27, 2015 The Week Ahead

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September 27, 2015 The Week Ahead

The S&P 500 ended the week lower, however; the trading range was fairly narrow.

With that said, the VIX closed above 23, as 20 appears to be the new base.

A lot of attention has been placed on the biotech/pharma sector after presidential candidate Hillary Clinton, made some comments regarding prescription costs. The market took these comments as being a negative in the sector, and thus, have put prices under pressure.

Crude Oil futures were relatively unchanged this week, as prices are trading slightly above $45 per barrel.

Now, here’s what’s on tap, starting on Monday:

Key Economic Data:
28 September 2015- Personal Income & Outlays 8:30 AM ET
1 October 2015- Jobless Claims 8:30 AM ET, ISM Manufacturing Index 10 AM ET
2 October 2015- Employment Situation 8:30 AM ET

Key Earnings:
29 September 2015- COST
1 October 2015- MU

Key Events:
28 September 2015 (runs till 9/30)- Deutsche Bank Leveraged Finance Conference
28 September 2015 (runs till 9/30)- Johnson Rice Energy Conference
29 September 2015 (runs till 10/1)- American Gaming Association Global Gaming Expo
29 September 2015 (runs till 9/30)- Wolfe Research Power & Gas Leaders Conference

September 24, 2015 Market Wrap Up

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September 24, 2015 Market Wrap Up

The S&P 500 finished the day lower, down over 0.5%, however; we got a big bounce off the lows, a range of about 30 points. The market got very weak after Caterpillar Inc (CAT) dropped their sales outlook and referenced that it could cut over 10,000 jobs. Of course, this is one of those companies that market participants use as a gauge of economic strength. Naturally, disappointing statements would be reflected in the overall market.

The VIX was up over 6%, closing at 23.457. For now, it appears that 20 might be a new base level.

The energy sector was up today; the United States Oil Fund (USO) was up about 1%. In addition, gold was very strong, the SPDR Gold Shares (GLD) was up over 2%.

On the options front, we saw bullish call buying in Cirrus Logic Inc (CRUS). Options that saw bearish put buying were in Williams Companies Inc (WMB).

Nike (NKE) reported earnings after the close, at the time of this writing, the stock is up 7%. Also, Fed Chairman, Janet Yellen is giving a speech on inflation.

Here’s what’s on tap for tomorrow:

Key Economic Data:
25 September 2015- GDP 8:30 AM ET

Key Earnings:
25 September 2015- FINL

September 22, 2015 Market Wrap Up

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September 22, 2015 Market Wrap Up

The S&P 500 finished the day significantly lower, down over 1%. There was some weakness out of Europe that followed through into the US markets. Much of that was attributed to some news out of Volkswagen and allegations that they’ve been manipulating emission tests.

The biotech sector took a hit for a second straight day. Analysts will be closely listening to comments out of Presidential hopeful, Hillary Clinton. Her comments on twitter are what really drove the sector south.

The VIX was up over 11%, closing at 22.45. For now, it appears that 20 might be the new base level.

The energy sector was relatively flat today; the United States Oil Fund (USO) was down less than 1%.

On the options front, we saw bullish call buying in Crocs Inc (CROX). Options that saw bearish put buying were in Hewlett Packard Co (HPQ).

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

Key Economic Data:
24 September 2015- Durable Goods Orders 8:30 AM ET, Jobless Claims 8:30 AM
25 September 2015- GDP 8:30 AM ET

Key Earnings:
24 September 2015- ACN, BBBY, JBL, KBH, NKE, PIR
25 September 2015- FINL

September 21, 2015 The Week Ahead

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September 21, 2015 The Week Ahead

The S&P 500 ended the day higher, however; volume was very light. With that said, we did get some form of relief after Friday’s sell off.

Despite the lackluster volume, the VIX sold off rather harshly, ending the day down nearly 10% at 20.14

Crude Oil futures were relatively strong, the United States Oil Fund (USO) was up nearly 3 percent.

On the options front, we saw bullish call buying take place in Etsy Inc. (ETSY). The bears were out in Valeant Pharmaceuticals International (VRX). In fact, the pharmaceutical space as a whole took a hit today after Presidential hopeful, Hillary Clinton, made some comments that were taken negatively amongst the sector.

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September 17, 2015 The Week Ahead

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September 17, 2015 The Week Ahead

The S&P 500 finished the day nearly flat after the much awaited FOMC meeting. Of course, there was a great deal of volatility, the S&P 500 had a range of 1986.73 to 2020.86. With the FED deciding to leave rates unchanged, we should continue to have uncertainty in the market.

With that said, what happens in other markets globally is back in play. Eyes will be shifted back to the European and Asian markets for early indications on how we’ll trade.

The VIX was actually below 18 at one point in time; however, it did rally back to 21.14 at the close.

The energy sector was relatively flat today; the United States Oil Fund (USO) was down less than 1%.

On the options front, we saw bullish call buying in United Continental Holdings (UAL). Options that saw bearish put buying were in Precision Castparts (PCP).

There are no major economic news or earnings tomorrow. However, we should see some interesting action towards the close, due to triple witching.

September 14, 2015 The Week Ahead

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September 14, 2015 The Week Ahead

The S&P 500 ended the week slightly higher, however; all eyes will be on the FOMC meeting, which is on Thursday. With that said, the markets might trade choppy on light volume. In addition, the Jewish New Year, begins Sunday night and ends Tuesday night.

It’s now been four straight Friday’s where the VIX has closed above 23.

Crude Oil futures were relatively flat last week. But, we’re less than $7 from the multi-year lows.

Here’s what else is on the schedule:

Key Economic Data:
15 September 2015- Retail Sales 8:30 AM ET, Industrial Production 9:15 AM
16 September 2015- Consumer Price Index 8:30 AM ET
17 September 2015- Housing Starts 8:30 AM ET, Jobless Claims 8:30 AM ET, Philly Fed Survey 10:00 AM ET, FOMC Meeting Announcement 2:00 PM ET, FOMC Forecasts 2:00 PM, Fed Chair Press Conference 2:30 PM ET

Key Earnings:
16 September 2015- ARCW, ASNA, CBRL, FDX, ORCL
17 September 2015- ADBE, RAD

September 10, 2015 Market Wrap Up

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September 10, 2015 Market Wrap Up

The S&P 500 finished the day higher after experiencing a great deal of volatility. We went from positive to negative and then back positive. The market actually gapped up overnight, however; it lost a lot of steam. Especially, when rockstar hedge fund manager David Tepper got on CNBC and made some rather bearish comments about the market.

For now, it seems like the weight of what happens in the Asian markets have had less of an influence. Possibly because we’ve got an FOMC meeting next week. It appears that the market is waiting to hear what their next move will be.

The VIX closed at 24.37, down nearly two points on the day.

The energy sector caught a nice bounce, as the United States Oil Fund (USO) closed nearly 3% higher.

On the options front, we saw bullish call buying in Avon Products (AVP). Options that saw bearish put buying were in Ball Corporation (BLL).

Here’s what’s going on for tomorrow:

Key Economic Data:
11 September 2015- PPI 8:30 AM ET

Key Earnings:
11 September 2015- KR, MFRM

Key Events:
Morgan Stanley Industrial CEO Unplugged Conference
Bank of America Annual Canada Mining Conference

September 9, 2015 Market Wrap Up

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September 9, 2015 Market Wrap Up

The S&P 500 was not able to follow through after yesterday’s move higher. Now, for a large part of the day it looked like it was going to be smooth sailing; however, when it was all said and done we witnessed a 40 point swing with the market closing nearly 1.5% lower.

For some time, our focus has been on the Asian markets. They’ve had a huge influence on how we’ve traded here. In addition, the FED meeting is coming up in about a week or two. With that said, that’s what traders are waiting and watching.

The VIX closed at 26.23, up nearly five points from the day low.

The energy sector saw some heavy selling pressure, as the United States Oil Fund (USO) closed 3.4% higher.

On the options front, we saw bullish call buying in Autodesk Inc. (ADSK). Options that saw bearish put buying were in Tenet Healthcare (THC).

Here’s what’s going on for the rest of the week:

Key Economic Data:
10 September 2015- Jobless Claims 8:30 AM ET
11 September 2015- PPI 8:30 AM ET

Key Earnings:
10 September 2015- LULU, FNSR, RH, ZMZ
11 September 2015- KR, MFRM

Key Events:
8 September 2015 (runs til 9/10)- Barclay’s CEO Energy Power Conference
8 September 2015 (runs til 9/10)- Barclay’s Global Consumer Staples Conference
8 September 2015 (runs til 9/10)- Citigroup Global Tech Conference
8 September 2015 (runs til 9/10)- JPMorgan Small/Mid Cap Conference
8 September 2015 (runs til 9/10)- Morgan Stanley Healthcare Conference
9 September 2015 (runs til 9/10)- Bank of America 2015 Gaming and Lodging Conference
9 September 2015 (runs til 9/10)- Bank of America 2015 Media Communications & Equipment Conference
9 September 2015 (runs til 9/10)- Cowen Global Transport Conference
9 September 2015 (runs til 9/10)- Goldman Sachs Global Retail Conference
9 September 2015 (runs til 9/10)- Wells Fargo Healthcare Conference
9 September 2015 (runs til 9/11)- Morgan Stanley Industrial CEO Unplugged Conference
10 September 2015 (runs til 9/11)- Bank of America Annual Canada Mining Conference