Friday’s Vital Data: JPMorgan Chase & Co. (JPM), Citigroup Inc (C) and Transocean LTD (RIG)

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Doom followed by some zoom manage to keep up appearances for some market bulls Thursday. For its part the S&P 500 ETF Trust (NYSEARCA:SPY) finished off 0.33% at a three month closing low, but still holding key technical support according to some of the market’s technical cognoscenti.

Friday’s Vital Data: JPMorgan Chase & Co. (JPM), Citigroup Inc (C) and Transocean LTD (RIG)Thursday was all about China, until it wasn’t. Out the gate, U.S. markets opened firmly lower and found additional sellers during the first hour as export data from the emerging markets giant managed to raise the specter of slowing global growth and backing the “risk-off” behavior.

Then and if for no other reason, as actual market drivers were all but absent, the magical support level of 2100 in the S&P 500 held and established a bit of bargain-hunting zoom to the upside according to some prognosticators with charts as proof, in hand.

Of course, 2120 may have been the number some market bulls and algorithms were banking on to hold. Or maybe it was a test of 18,000 in the Dow Jones Industrial Average?

Alternatively, key financials Citigroup Inc (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC) do return to the corporate confessional Friday morning. As much, traders could be waiting on clarity from this influential sector before embracing further autumnal tendencies.

Elsewhere, the iShares FTSE/Xinhua China 25 Index (NYSEARCA:FXI) didn’t fare as well as stateside barometers.

The ETF finished off 1.59% on the heels of data showing a much-weaker-than forecast 10% decline in year-over-year exports for September. For the week FXI is off 6% after nudging to a fresh year-to-date high Monday.

Lastly, weekly and swelling inventory data from the U.S. Energy Information Administration helped send the Nymex crude oil contract below the well-watched $50 level intraday Thursday. Bulls however held the advantage by day’s end with a gain of 0.75% and close of $50.55 as strength in equities likely spilled over into the oil pit.

Unusual Options Action

The CBOE Volatility Index or VIX found another bid of 4.90% to finish at 16.69% Thursday. The market’s fear gauge traded as high as 18% to establish a spread of 27.50% above the 10-day simple moving average.

Based on the differential, the VIX continues to signal short-term, unsustainable aggression on the part of market bears.

Countering the fear factor, historical panics are typically associated with much higher VIX readings. Further, equities remain just off all-time-highs, pricey by most measures and generally, much moodier October price action, still very much MIA in 2016.

Transocean

A trader appears to be adjusting a bearish position on oil services play Transocean LTD (NYSE:RIG) using 10,000 Weeklys Nov. 11 $9.50 put and regular Nov $10 put options.

The former’s non-existent open interest and latter’s near open interest match of 10,200 suggests a spread may have occurred wherein an existing bearish position in the regular Nov $10 put was rolled into the slightly shorter duration and lower $9.5 strike weekly put.

There is both a time and price disadvantage with this roll. Nonetheless, it could be an attractive trade off for the bearish strategist.

Given the trader is being compensated with a credit for the adjustment, the pricing could present this bear with the opportunity to hold the new position for a lower debit, possibly for free or even a profit predicated on the prior initial purchase price of the outright Nov $10 put.

As of this publishing, investment accounts under Christopher Tyler’s management do not maintain positions in any of the securities or their derivatives mentioned. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT.

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The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.


Article printed from InvestorPlace Media, https://investorplace.com/2016/10/fridays-vital-data-jp-morgan-jpm-citigroup-c-and-transocean-rig/.

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