Market News Archives - CBOE Blogs

  • Market News | Technical Analysis & Charts | VIX | Dec 23, 2015, 2:01 PM

    SPX & The Golden Cross

    SPX & The Golden Cross

    For those that watch the market with a “technician’s eye” something unusual happened yesterday. It marked the first time since January 31, 2012 when the 50 day moving average on the SPX Index crossed over its 200 day moving average. Technical types call this “The Golden Cross”, which is almost unequivocally considered a bullish formation (especially in concert with increasing volume). To be fair, in order to set up a Golden Cross, it must be preceded by a “Death[...]

  • Market News | Futures | Dec 21, 2015, 3:19 PM

    Russell 2000® Index Options (RUT) - “Weeklys” New PM-settled Expirations

    Russell 2000® Index Options (RUT) -  “Weeklys” New PM-settled Expirations

    The Russell 2000® Index (RUT) Weeklys options are listed to provide expiration opportunities every week. Weeklys are typically listed on Thursdays and expire on Fridays, provided that such expirations were not previously listed (i.e. Weeklys are not listed if they would expire on a 3rd Friday or if a Quarterly option would expire on the same day). Trading Activity RUT “Weeklys” The daily and monthly trading activity in the RUT “Weeklys” average approximately 30% of the[...]

  • Market News | VIX | Trader Talk | Education | Strategy | Trade Ideas | Dec 20, 2015, 3:30 PM

    Weekly Review - Russell 2000 Options and Volatility - 12/14 - 12/18

    Weekly Review - Russell 2000 Options and Volatility - 12/14 - 12/18

    Small cap stocks continue to languish relative to large cap stocks for 2015.  The Russell 2000 (RUT) was down 0.23% while the Russell 1000 (RUI) lost 0.35% last week.  RUT is down 6.95% for 2015 while the large cap oriented RUI is down only 2.94%.  It’s going to take a small miracle for RUT to close the gap over the next two holiday shortened weeks. The CBOE Russell 2000 Volatility Index (RVX) rebounded relative to VIX last week but finished very close to parity. [...]

  • Market News | VIX | Trader Talk | Education | Futures | Trade Ideas | Dec 20, 2015, 10:44 AM

    Weekly Review - VIX Futures and Options - 12/14 - 12/18

    Weekly Review - VIX Futures and Options - 12/14 - 12/18

    VIX gave up 15% last week, despite the S&P 500 losing a little and this index trading in a range of greater than 80 points for the second consecutive week.  Consensus thinking is that with the Fed finally hiking rates a little uncertainty came out of the markets.  Of course Janet Yellen’s press conference was still in full swing when market pundits started discussing when the next potential rate hike may occur. The curve depicting the short dated VIX futures contracts[...]

  • Market News | Dec 18, 2015, 3:13 PM

    TYVIX Weekly Report: FOMC Meeting Aftermath: Treasury Volatility Falls to Near Lows for Year

    TYVIX Weekly Report: FOMC Meeting Aftermath: Treasury Volatility Falls to Near Lows for Year

    The volatility of 10-Year Treasuries approached its lows for 2015 late Friday morning, December 18, when TYVIX fell to 4.68 on an intraday basis. On a closing basis, the TYVIX Index had not fallen this low since October 6, 2014, when it closed at 4.68. To put these numbers in perspective, the median TYVIX value since 2003 is 6.20. One might conclude that the Treasury market has settled down on assurances by the Federal Open Market Committee that additional increases in the target federal fund[...]

  • Market News | Dec 18, 2015, 12:33 PM

    The Weekly Options News Roundup – 12/18/2015

    The Weekly Options News Roundup – 12/18/2015

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast, online and social media outlets. AFX Up and Running The new American Financial Exchange (AFX), an electronic marketplace for small and mid-sized banks to lend and borrow short-term funds, launched successfully last Friday. Trading on the first day represented a total value of $15 million in transactions. “MB Financial Bank Trades on New Financial[...]

  • Market News | Dec 18, 2015, 12:08 PM

    Weekly Stock Market Commentary: Bulls Have Not Yet Seized the Moment

    Weekly Stock Market Commentary: Bulls Have Not Yet Seized the Moment

    Stock market volatility continues to be above-average. The oversold rally that took place earlier this week seems to have run out of steam. The $SPX chart is now showing lower highs and lower lows. That is a bearish trend developing. It will remain in effect until the most recent high is exceeded (2100, in this case). Both equity-only put-call ratios remain on sell signals. Market breadth was very negative coming into the week, and the breadth oscillators fell to extreme oversold readings. Those[...]

  • Market News | Dec 17, 2015, 12:17 PM

    Monetary Policy (Finally) Shifts – Now What?

    Monetary Policy (Finally) Shifts – Now What?

    Yesterday, in a move more telegraphed than a Jay Cutler Pick 6, the Federal Reserve Board voted unanimously to raise the Fed Funds target rate by 25 basis points. Market watchers, and this blog’s audience don’t need a weatherman to tell them which way the wind blows. The question, as always is – what’s next? The “dot plot” points to a series of four (4) quarter point hikes over the course of 2016. We will see if the U.S. and Global economy remains on terra-firm,[...]

  • Market News | Technical Analysis & Charts | Dec 16, 2015, 10:15 AM

    Stock Market Action Last Week Was Disturbing

    Stock Market Action Last Week Was Disturbing

    I often say there are a million reasons to sell, but only one reason to buy.  Last week, it seemed that any reason to sell was a good one and was valid (and used).  Friday's ugly pasting was the culmination of a setup earlier in the week the told us a rejection of prices was going to happen.  As we see in the 30 min chart from this past week early highs were rejected on a few occasions.  Further, there were several 'fakeouts' during the week where it appeared there would be some[...]

  • Market News | Technical Analysis & Charts | VIX | Dec 15, 2015, 12:19 PM

    Looking at VIX With Respect to an Initial Rate Hike

    Looking at VIX With Respect to an Initial Rate Hike

    On June 30, 2004 the Federal Reserve Open Markets Committee raised the intended Fed Funds rate from 1.00% to 1.25%.  This was the last first time we had an initial hike in interest rates (yes you read that correctly).  A lot has happened since this last first hike.  I did the quick math and my intern was nine years old, so she’s learned to drive and reached a major milestone that goes along with being 21 years old.  When we last had a rise in rates ISIS was either a pharmaceutical[...]

  • Market News | Trade Ideas | Dec 14, 2015, 4:59 PM

    Earnings Previews - 12/15 - 12/22

    Earnings Previews - 12/15 - 12/22

    I've been remiss at keeping up with earnings and will use a brutal travel schedule as my excuse.  Since there are only two companies reporting next week I'm putting all the earnings for this week and next into a single blog.  The numbers below represent the last three years worth of earnings releases with Max being the biggest stock price rally, Min the biggest loss, Abs Avg is the average move without taking direction into account, and Last Q showing what the stock did when the company[...]

  • Market News | Dec 14, 2015, 12:05 PM

    Weekly Market Outlook - Did Bears Crush The Santa Claus Rally?

    Weekly Market Outlook - Did Bears Crush The Santa Claus Rally?

    Despite ending the first week of December on a bullish foot, the bears started - and finished - last week in charge of things... to say the least. Last week's -3.8% pullback was the biggest weekly loss for the S&P 500 (SPX) (SPY) since the heart of the August meltdown. Perhaps worse, the pullback broke some key support levels, and there isn't much other support until we get back to the August lows. On the flipside, between the time of year a Santa Claus rally usually takes shape[...]

  • Market News | Dec 13, 2015, 7:11 PM

    Weekly Review - Russell 2000 Index and Volatility - 12/7 - 12/11

    Weekly Review - Russell 2000 Index and Volatility - 12/7 - 12/11

    Small cap stocks took it on the chin last week with the Russell 2000 (RUT) losing just over 5% on the week which places the small cap benchmark at down 6.73% for 2015.  In the large cap space the Russell 1000 (RUI) lost 3.85% last week which caused this large cap benchmark to move into the red for 2015.  RUI is now down 2.6% for 2015. Before moving to the volatility indexes I want to address where we are in December with respect to RUT and RUI.  A couple of weeks ago I[...]

  • Market News | Dec 13, 2015, 8:26 AM

    Weekly Review - VIX Futures and Options - 12/7 - 12/11

    Weekly Review - VIX Futures and Options - 12/7 - 12/11

    VIX put up a heck of a Friday to top off the biggest weekly gain on a percentage basis since the debacle that was late August.  I mentioned this in my previous blog, but it is worth reiterating.  While at RMC Asia one of the best comments stated something to the effect of, “When the VIX curve is flat the market is uncertain”.  That pretty much describes the term structure chart from Friday. I’m beginning to learn that flat to slight contango is normal[...]

  • Market News | Dec 12, 2015, 8:30 PM

    Weekly Review - Volatility Indexes and ETPs - 12/7 - 12/11

    Weekly Review - Volatility Indexes and ETPs - 12/7 - 12/11

    I have returned from a couple of weeks in Asia speaking at CBOE’s First Asian version of CBOE’s Risk Management Conference and helping with the launch of the CBOE Options Institute at SGX in Singapore.  One of the best comments I heard at Risk Management was that when the VIX term structure is flat it indicates uncertainty with respect to the equity markets.  I think this statement translates well with respect to the chart below as well.  VIX, VXV, and VXMT all closed within[...]