Daily Issues

No Save Haven for Equities

February 11, 2016

Stocks have spent most of today selling off, with the Dow Jones Industrials down as much as 380 points, amid another rout in oil prices and revulsion for the Swedish central bank moving to negative interest rates in a desperate effort to ward off deflation.

All sectors are in the red today, with financials and industrials leading the declines. Telecom and discretionary are modestly outperforming.

The S&P 500 Volatility Index ($VIX) has been strangely quiescent during the sell-off, rising only as much as 10% today, which is about half of what you would expect if the Dow is down as much nearly 400 points.

In today's Trader's Advantage, we'll close out of two trades and review the remaining open positions.

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Fed Chair's Testimony in Focus

February 10, 2016

Stocks traded higher in choppy action on Wednesday as most of the focus was on Fed Chair Janet Yellen's testimony and Q&A in front of the House Financial Services Committee.

Earnings, fresh OPEC forecasts, and a crude inventory draw were also in headlines, and China remains closed for the week.

Health care, IT, and discretionary led gains, while utilities and telecom were the only sectors in the red.

In today's Trader's Advantage, we'll focus on a review of our open positions.

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Short-Side Opportunities Abound

February 9, 2016

Stocks languished for most of the session, finally closing slightly higher despite concerns over global growth and the broad weakness in financial institutions here and abroad. A steep overnight decline in the Nikkei, backlash against negative rate policies, and International Energy Agency skepticism about crude oil production cuts have also been in focus.

The reasons above are enough to support that stocks will falter in the near term, and I have three new short trades to capitalize on the weakness. That said, I have some long ideas that could buck the trend, and I may send them as soon as tomorrow morning if the market finds some traction in the early going.

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Which of the following sectors of the market do you think will outperform for the balance of 2015?

  • Utilities
  • Energy
  • Healthcare
  • Technology
  • Financials
  • Industrials