The Dow is Eying a Triple-Digit Bounce; Fed on Tap

A terrorist shooting in Paris has claimed the lives of at least 12 people

Jan 7, 2015 at 8:20 AM
facebook twitter linkedin

Following two consecutive days of sharp losses, the Dow Jones Industrial Average (INDEXDJX:DJI) is signaling a triple-digit bounce this morning. A handful of market-moving events are on the day's docket, including updates on private-sector jobs and crude inventories, as well as the highly anticipated release of the minutes from the Federal Open Market Committee's (FOMC) latest meeting. Additionally, traders will be keeping one eye trained on Paris, where at least 12 people were killed in a terrorist attack overnight.

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 more than 135 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1.3 million call contracts traded on Tuesday, compared to 770,872 put contracts. The resultant single-session equity put/call ratio plunged to 0.59, while the 21-day moving average remained at 0.66.

NYSE and Nasdaq summary

Volatility indices

Currencies and Commodities

  • The U.S. dollar index is up 0.5% at 91.96.
  • Crude oil is on the mend, and was last seen 0.8% higher at $48.33 per barrel.
  • Gold, meanwhile, is down 0.5% at $1,213.30 per ounce.
Currencies and commodities

Earnings and Economic Data

ADP's national employment report, the FOMC's meeting minutes, the international trade balance, and weekly crude inventories come out today. Greenbrier (GBX), Monsanto (MON), and SUPERVALU (SVU) will unveil earnings.

Overseas Trading

Asian benchmarks settled in the green today. In China, the Shanghai Composite tacked on 0.7% amid a rally in airline and brokerage names, while Hong Kong's Hang Seng settled up 0.8%. Elsewhere, South Korea's Kospi added 0.1%, and Japan's Nikkei finished fractionally higher.

European markets are also up at midday, as a drop in the eurozone's inflation rate sparks speculation the European Central Bank (ECB) may announce a fresh set of stimulus measures. At last check, London's FTSE 100, the German DAX, and the French CAC 40 were all flirting with 1.1% gains.

Overseas markets

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.

Unusual options activity - puts

Unusual options activity - calls


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners