"A sleepy session on Tuesday saw most of the indexes finish near their respective flat lines, although the Dow Jones Industrial Average (INDEXDJX:DJI) and S&P 500 Index (SPX) both notched record closing highs," noted Schaeffer's Senior Options Strategist Tony Venosa, CMT. "One sour note to report was that small-caps, as measured by the Russell 2000 Index (RUT), were down more than 1%." In today's session, futures for both the DJI and SPX are lingering south of breakeven, as traders await direction from a pair of inflation reports. Meanwhile, on the earnings front, results from retailer Macy's, Inc. (NYSE:M) and tractor supplier Deere & Company (NYSE:DE) could garner some attention.
Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are about 9 points below breakeven.
The Chicago Board Options Exchange (CBOE) saw 981,878 call contracts traded on Tuesday, compared to 598,112 put contracts. Both the resultant single-session put/call ratio and the 21-day moving average arrived at 0.61.
From the Trading Floor
"The SPDR S&P 500 ETF Trust (SPY) spent the entire session on Tuesday vacillating around the call-heavy $190 area I previously mentioned," continued Venosa. "If markets cannot find a catalyst to spark a rally, we are in danger of a potential unwind effect from these calls -- which could pressure shares lower."
Currencies and Commodities
Earnings and Economic Data
Economic reports slated for today include the producer price index (PPI) and core PPI, as well as the weekly crude inventories. Reporting earnings are Cisco Systems (CSCO), Agilent Technologies (A), DE, Diana Shipping (DSX), Jack In The Box (JACK), M, NetEase.com (NTES), Pinnacle Foods (PF), Plug Power (PLUG), SeaWorld Entertainment (SEAS), SodaStream International (SODA), Valero Energy Partners (VLP), and Youko Tudou (YOKU).
The Case for Big Moves in IWM and QQQ
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