A large intraday swing resulted from Janet Yellin’s FOMC minutes discussion.  Though no interest rate announcements were forthcoming, the Fed’s goal for reducing its bond holdings spooked the market and wiped out intraday gains.  Despite the disappointment, major markets are still holding key support levels, including the 50-day moving average.


All sectors are flat, except for the technology.  Near term market sentiment is neutral to slightly bearish.  The CBOE Volatility Index (VIX), after slipping to near 11 earlier this week, popped back up near 13 after the Fed discussion.  Seasonality suggests that April could still be a positive month, though, so the signals are currently mixed.  Good options traders can make money in any market, and some even retire rich.  To learn more:  http://www.optionsuniversity.com/new-retire-rich/


OPTIONS INSIGHTS:  Cash flow trades on quality tech stocks are still working despite the recent setback.  Apple, Facebook, Amazon, and others continue to hold up well.  The more liquid stocks can be purchased in the form of LEAPS (long term options) out to January or even beyond, and used as a basis for selling short term Out-of-the-Money CALLS against it for cash flow.  Other stocks, such as GOOGL, are not liquid beyond May, and can be traded as vertical spreads instead of horizontally.  To learn more about how to trade options, go here:  http://www.optionsuniversity.com/options-online-classes/all-classes.php

OVERSEAS:  Asian markets were mixed in overnight action.  The Nikkei is down over 1% (a four month low), while the industrial Chinese markets such as Shanghai and Shenzhen were up slightly.  Trump’s meeting with China’s XI will happen on Friday, and will likely involve dealing with the increasing military threat of North Korea and trade.  European markets were likewise mixed.

OIL:  Crude inventories grew by 1.6 Million barrels, leading once again to all-time highs.  The inventory report was mixed, however, as gasoline inventories pulled back slightly.  Oil prices have pushed their way above 51.  So, has oil bottomed, or is this just a short-lived rally in a bearish descent?  For amazing insights on the oil market, listen to Courtney Smith, a true commodities expert.  To hear what he has to say about oil and other opportunities, click here:    http://www.optionsuniversity.com/tradesmith-video-newsletter/

JOBS:  The big news was an impressive ADP employment report that crushed expectations (263K new payroll jobs vs. 170K expected).  Poor weather kept expectations low.  Likewise, the Gallup Job Creation index also improved (37 vs. 35 prior).  Job cuts, however, increased somewhat in the Challenger report by about 3K.  Telecom, Education, and Retail were the areas that were cut the most.  Finally, Jobless Claims were expected to decrease from 258K last week to about 250K this week.  The actual number came in at just 234K, suggesting that the U.S. Jobs situation may continue to improve.

BIOTECH INSIDER:  When it comes to making money with biotech and pharmaceutical names, it’s essential that you never limit yourself to just trading the long side opportunities.  In fact, there are plenty of ways to make money on the short side, too, especially after a substantial move higher.  Case in point, the other week, we mentioned that Bristol Myers (BMY) had come overbought on several of our momentum indicators, topping out at $58.12 at the exact same moment that relative strength, MACD, and Money Flow became overbought, too.   Since then, we’ve watched the stock reverse from $58.12 to $53.90, allowing folks to capture another round of gains on the short side.  We are still projecting a pullback to at least $52.50 a share on the stock. To learn more about how we can capture long and short opportunities with the same stock, click here.  http://optionswealthinsiders.com/biotechv2/

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