Monday’s markets were mixed as investors ponder the Fed meetings this week
Tech turned lower with the upcoming ALIBABA IPO. The NDX Nasdaq 100 index lost 1% to 4030, dropping 39 points, lowering YTD performance to plus 12%.
AMZN lost 2.2% to $324 on 1.4 times normal option volume on 55% put action. The September $320 puts were active, trading 5500 contracts with new long positions expiring Friday. AMZN is also down 19%.
DOW stocks were the winners, with a 44 point gain back above 17,000. About 2/3 of the index components were in the green, with PFIZER leading the day plus 1.7%, closing just under $30. PFE was the number 10 most active equity option, trading 104,000 contracts on 68% calls, bringing the stock to -2% for 2014.
The broad market S&P recovered from new relative lows with an unchanged percentage close, down 1 point at 1984 in the SPX. A peek into the positive late in the day was noted against a backdrop of the tech tumble.
The VIX ignored the S&P price indifference jumping 6% to $14.12. $14.50 is the midpoint resistance to watch on a weekly basis of the $17.57 August 1 peak and the August 24th$11.24 low.
VIX options traded 1.4 times normal activity, 725,000 contracts with 77% calls ahead of the last September expiration day today. The October $20 calls traded 40,000 lots, though the VIX hasn’t been at that level since February.
BHP Billiton has been digging a hole, down 12% from the July 29th 52 week high, to close at $64.61. 20,000 of the October $60 puts established new positions against open interest of 137. These positions could represent a protective hedge or speculative short.
Stocks to watch this morning include:
Sears Holding borrowed 400 million dollars from CEO Eddie Lampert’s Hedge Fund. A little cash infusion can’t hurt, with SHLD down 2% yesterday
TESLA was down 9% yesterday, and had an analyst saying to buy to dip. TSLA is still up 70% YTD, with early morning action positive .5% today
Humana looks to get healthy and strong with a 2 billion dollar stock buyback plan. HUM is up half .5% at $128.50 in the pre market.
Overseas, markets are red with The Nikkei in Japan minus .25%. Europe is also down with the FTSE in London, and the DAX in Germany off .3%.
The RSX Russia Market Vectors ETF saw a huge out of the money September 26th weekly put play. 64,000 of the $22.50 puts traded for $.10 as the index closed at $24.11, 6% above the strike with only two weeks until expiration.
Stock index futures prices are steady to weaker with the Emini S&P minus 2 points. The Dow futures are 15 points lower here this morning with an hour to go before the open of the cash stock market.