9:00am (EST)
The market extended its winning streak to four on Thursday but the drive for five may have ended after yesterday’s closing bell.
The Dow rallied 84 points, or 0.8%, and went out near its high as the index closed at 10,393. The S&P 500 closed above 1,100 for the first time in over two weeks as it added 7 points, or 0.7%, to settle at 1,106. As for the Nasdaq, it also added 0.7%, or 15 points, and closed at 2,241.
All three indexes look poised to blow through their recent resistance levels but last night the Federal Reserve decided to boost the rate banks pay for emergency loans. The emergency discount rate was bumped up from 0.50% to 0.75% and will go in effect today.
Futures were weak all night but have come off their worst levels.
The action is part of a broader move to pull back the extraordinary aid the Fed has provided to fight the financial crisis. It will be interesting to see how the market holds up in the first hour of trading as the modifications are not expected to lead to tighter financial conditions for households and businesses. In other words, if calmer heads prevail then the bulls could continue their winning ways.
The Fed had signaled for weeks that a higher discount rate was coming, though the timing of Thursday’s decision caught everybody by surprise.
As we head to press, Dow futures are off by 10 points to 10,364 while the S&P 500 futures are lower by 3 to 1,102. The Nasdaq futures are down 2 to 1,819. This is a MAJOR improvement from last night as the Dow futures were off nearly 100 points at 2am. And you thought we didn’t work overtime…
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Tags: option picks, option signals, options alerts, stock options trading
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on Friday, February 19th, 2010 at 9:04 AM and is filed under Economic News, Market Commentary, Strategies, Trading Psychology.
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Market Gets A Curveball
9:00am (EST)
The market extended its winning streak to four on Thursday but the drive for five may have ended after yesterday’s closing bell.
The Dow rallied 84 points, or 0.8%, and went out near its high as the index closed at 10,393. The S&P 500 closed above 1,100 for the first time in over two weeks as it added 7 points, or 0.7%, to settle at 1,106. As for the Nasdaq, it also added 0.7%, or 15 points, and closed at 2,241.
All three indexes look poised to blow through their recent resistance levels but last night the Federal Reserve decided to boost the rate banks pay for emergency loans. The emergency discount rate was bumped up from 0.50% to 0.75% and will go in effect today.
Futures were weak all night but have come off their worst levels.
The action is part of a broader move to pull back the extraordinary aid the Fed has provided to fight the financial crisis. It will be interesting to see how the market holds up in the first hour of trading as the modifications are not expected to lead to tighter financial conditions for households and businesses. In other words, if calmer heads prevail then the bulls could continue their winning ways.
The Fed had signaled for weeks that a higher discount rate was coming, though the timing of Thursday’s decision caught everybody by surprise.
As we head to press, Dow futures are off by 10 points to 10,364 while the S&P 500 futures are lower by 3 to 1,102. The Nasdaq futures are down 2 to 1,819. This is a MAJOR improvement from last night as the Dow futures were off nearly 100 points at 2am. And you thought we didn’t work overtime…
Current subscribers, check the Members Area for the updates.
Tags: option picks, option signals, options alerts, stock options trading
This entry was posted on Friday, February 19th, 2010 at 9:04 AM and is filed under Economic News, Market Commentary, Strategies, Trading Psychology. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.