In this past weekend's Striking Price column in Barron's, Steve Sears noted that investment research goliath Morningstar recently created a new "options" investing category in their fund listings. Mr. Sears believes this new cateogry signifies that options have now become "part of the matinstream investment landscsape." With options trading volume alomost doubling in the last 10 years, we'd have to agree with Mr.
A "stealth" correction has been underway for a couple of weeks. Most people would be mildly surprised to realize that $SPX has fallen more than 60 points from its recent highs near 2110, just over two weeks ago. The decline has been steady and unspectacular, accompanied by few actual sell signals. In other words, it's been a minor correction so far.
$SPX continues to display support at 2040, but a violation of that level would be bearish.
It’s a bit hard to realize, because it’s happened so quietly, but $SPX has fallen more than 60 points from its highs of two weeks ago. It’s done this without causing panic, although some negativity has certainly arisen in our indicators. $SPX has still not taken out the important support level at 2040. If it does that, a more severe correction will unfold.
Last week, the CBOE announced the launch of its new dedicated paid option data site titled the CBOE Livevol Data Shop. The new site is quite user friendly and allows one to customize their data package based on their needs. For example, a customer could purchase daily end-of-day option data including all of the greeks for not just all stocks, but instead just a select few. The prices reflect your preferences and can cost as little as $6 per month per underlying.
This article was originally featured in the 3/27/16 edition of The Option Strategist Newsletter.
Lawrence G. McMillan's recent article titled Understanding the $VIX Futures Term Structure was recently picked up and published at Proactive Advisor Magazine. Read the full article by clicking the link below:
The market's momentum is slowing, but it hasn't necessarily reversed yet. The number of negative breadth days, and their intensity is increasing. The $SPX chart (Figure 1) also shows a waning of momentum, but even the first support level at 2070 has not been broken.
$SPX closed above 2100 this week for the first time since last December. The Index chart remains bullish, with support at 2070 and 2040. There is multitudinous resistance between 2100 and the all-time highs at 2135, but this market hasn't had problems with resistance so far.
Equity-only put-call ratios remain on buy signals, even though they are mostly just moving sideways recently.
McMillan Analysis Corp. founder and president Lawrence G. McMillan recently wrote an article detailing the current state of the stock market for MarketWatch. Read the following preview or click the link below for the full article: