Dow Jones Industrial Average Ready to Rally to a Weekly Win

It should be a volatile session due to quadruple-witching expiration

Karee Venema

Dec 19, 2014 at 8:34 AM

The Dow Jones Industrial Average (INDEXDJX:DJI) is poised to extend its Fed-induced momentum into a third straight session, with futures pointed solidly higher ahead of the bell. What's more, the blue-chip barometer is easily on pace to resume its slate of weekly wins, and is already up 2.9% from last Friday's close. Although today's economic calendar is void, it is quadruple-witching expiration, which should create some increased volatility. Additionally, speeches from Chicago Fed President Charles Evans and Richmond Fed President Jeffrey Lacker should garner some attention.

Is triple-digit territory on the horizon for this biopharmaceutical firm? One brokerage firm certainly thinks so.
With NQ Mobile Inc (ADR) (NYSE:NQ) set for a post-earnings plunge, which group of put players came out on top?
In case you missed it, 2 first-quarter sector standouts to keep on your watch list.

And now, on to the numbers...

Dow Jones Industrial Average, S&P and Nasdaq futures

Futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) are nearly 82 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.20 million call contracts traded on Thursday, compared to 691,629 put contracts. The resultant single-session equity put/call ratio plunged to 0.58, while the 21-day moving average moved up to 0.65.

Currencies and Commodities

The U.S. dollar index is up 0.1% at 89.34.
Crude oil is poised to bounce back, up 2% at $55.44 per barrel.
Gold, meanwhile, is 0.2% higher at $1,196.80 per ounce.

Earnings and Economic Data

There are no notable economic reports today. BlackBerry (BBRY), CarMax (KMX), Finish Line (FINL), and Paychex (PAYX) will step into the earnings spotlight.

Overseas Trading

Asian markets rallied in the wake of a big win on Wall Street. In Japan, the Nikkei soared 2.4% -- its best session in nearly seven weeks -- amid a cooling yen and an upbeat economic outlook from the Bank of Japan (BoJ). Elsewhere, China's Shanghai Composite and South Korea's Kospi both posted 1.7% gains, while Hong Kong's Hang Seng added 1.3%.

European benchmarks are mostly lower at midday, pressured by a retreat in banking and healthcare stocks. At last check, the German DAX is down 0.4%, and the French CAC 40 is off 0.2%. London's FTSE 100 is bucking the regional bearish trend, though, and is up 0.4%.

Unusual Put and Call Activity:

For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!