Thursday morning we heard that the CPI was Down 0.6% in November. That’s just the way the headline read. We normally hear how the Core CPI moved and we did today but it was not the headliner. These numbers are so silly anyway. I don’t know how anyone can believe them.
An Illinois court overturned a $10 billion class action suit aimed at Philip Morris. As you might imagine, MO was up about 4% on the news. This stock closed today over 76 to an all time high. Back in 2000 it had just gotten hammered by the tobacco decision and traded down under 20, a quadruple to today in about five years. If it’s any interest to you, I was recommending MO at the time. Of course, it wasn’t a popular choice when it was under 20, but today it is popular. So, what do you think this contrarian thinks?
Tonight, ORCL (Oracle) announced earnings and they disappointed. Their net earnings dropped 2.1% on a revenue rise of 19%. The stock dropped nearly 3% after the news. The rest of the market seemed uninterested as the futures are up in overnight trading.
Friday is what they call Quadruple Witching as four types of derivative in the stock market expire, stock options, index options, futures, and options on futures. At any rate, this happens once a quarter as that is how the futures trade, March, June, September, and December. Options on stocks and indexes expire once a month and those days tend to be a little volatile too but not quite like the Quadruple Witching. Normally there is heavy volume traded as positions are unwound forced by the expirations. Mostly, these contracts are not executed, just unwound so there can be a lot of volume.
Based on the Quad Witch, we don’t see much of anything real happening on Friday. We will be back again on Sunday evening for another post. See you then.
Dow Industrials: 10,881.67 -1.84 wow
RYVNX: 18.43
TLT: 90.40
BGEIX: 14.31
BEGBX: 13.36
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1 comment:
I can't decide if studying futures trading system really helps of it it's all just a big crap shoot.
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