Dow Jones Industrial Average Fights to Stay Positive; Chinese Stocks Swoon

How Fund Managers Could Fuel a Bounce for Stocks

May 5, 2015 at 8:33 AM
facebook twitter linkedin

After two straight days of gains to start the month of May, the Dow Jones Industrial Average (DJIA) is struggling to stay positive this morning, as traders tread cautiously ahead of international trade figures and the Institute for Supply Management's (ISM) non-manufacturing index. However, earnings from blue chip Walt Disney Co (NYSE:DIS) could give the Dow a boost, with the media giant on track to open at a new record high following the release of its quarterly results. Across the pond, traders are jittery as European leaders continue to debate over Greece's aid package, while Chinese stocks got crushed on new margin-trading requirements.


Continue reading for more on today's market, including:


And now, on to the numbers…


Futures on the Dow Jones Industrial Average (DJIA) are less than 2 points above fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 789,566 call contracts traded on Monday, compared to 431,329 put contracts. The resultant single-session equity put/call ratio dropped to 0.55, while the 21-day moving average edged down to 0.62.



Currencies and Commodities

  • The U.S. dollar index is up 0.04% at 95.52.
  • Crude oil has jumped 1.1% to trade at $59.58 per barrel.
  • Gold is 0.3% higher at $1,190.30 per ounce.



Earnings and Economic Data


International trade figures and the ISM non-manufacturing index will come out today. Agrium (AGU), Allstate (ALL), Archer-Daniels-Midland (ADM), Bloomin' Brands (BLMN), Devon Energy (DVN), DIRECTV (DTV), Discovery Communications (DISCA), Electronic Arts (EA), Emerson Electric (EMR), Estee Lauder (EL), Fossil (FOSL), Frontier Communications (FTR), Herbalife (HLF), Hyatt Hotels (H), ISIS Pharmaceuticals (ISIS), Kellogg (K), Groupon (GRPN), Mylan (MYL), Myriad Genetics (MYGN), News Corp (NWSA), Office Depot (ODP), RetailMeNot (SALE), Skullcandy (SKUL), SolarCity (SCTY), Sprint (S), VIVUS (VVUS), Weight Watchers International (WTW), and Zulily (ZU) will take the earnings podium. To see what else is on this week's agenda, click here.


Overseas Trading


Asian markets ended sharply lower, led by the Shanghai Composite -- which plunged 4.1% on news that a number of brokerage firms have tightened margin-financing requirements. It was the mainland index's worst single-day performance in almost four months. Meanwhile, Hong Kong's Hang Seng reversed lower to finish with a 1.3% loss, as gaming stocks were hit by woeful revenue numbers out of Macau. Markets in Japan and South Korea were closed for holiday.


European benchmarks are mixed, as traders keep an eye trained on meetings between Greek leaders and other eurozone officials to discuss the nation's bailout program. London's FTSE 100 has tacked on 0.5%, the French CAC 40 is just 0.02% above breakeven, and the German DAX is down 0.2%.




Unusual Put and Call Activity








These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners