Dow Jones Industrial Average Set to Plunge as China Panic Spreads

What This S&P Record Could Mean for the Rest of 2015

Jul 8, 2015 at 8:39 AM
facebook twitter linkedin


Futures on the Dow Jones Industrial Average (DJIA) are pointed starkly lower this morning, as overseas tumult looks ready to weigh on domestic equities. Primarily, Chinese markets got walloped today, with many concerned the sell-off will only get worse. Elsewhere, Greece has until the end of the week to submit a formal financial reform proposal to its creditors. European leaders will make a decision on the submission on Sunday. 

On the domestic front, the minutes from the Federal Open Market Committee's (FOMC) latest meeting are set for release this afternoon. Traders are also anxious to see the latest crude inventory report, which -- along with other commodities -- has had a rough week.  

 

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

 

And now, on to the numbers…

150708Futures

Futures on the Dow Jones Industrial Average (DJIA) are 141.9 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 877,764 call contracts traded on Tuesday, compared to 683,815 put contracts. The resultant single-session equity put/call ratio rose to 0.78, while the 21-day moving average remained at 0.65.

150708Recap1

150708OV2

Currencies and Commodities

  • The U.S. dollar index is off 0.3% at 96.62. 
  • Crude oil has added 0.4% to trade at $52.55 per barrel. 
  • Gold is up 0.3% at $1,155.90 per ounce. 

 

150708Currencies

 

Earnings and Economic Data

 

The minutes from the FOMC's June meeting will be released this afternoon, and traders will also hear the latest on crude inventories. San Francisco Fed President John Williams is the first in a long line of central bankers to hit the podium this week, with an afternoon speech in Los Angeles on the docket.

Meanwhile, Alcoa's (AA) post-close report marks the unofficial start of second-quarter earnings season. WD-40 (WDFC) is also set to announce its latest profit and revenue figures. To see what else is on this week's agenda, click here.

 

Overseas Trading

 

For a breakdown of today's trading in Asia and Europe, including the latest on Greece and the sell-off in China, read China's Free Fall Drags Asian Markets Lower

 

Unusual Put and Call Activity

 

150708OV6

 

150708Ov7

 

 

 

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