After two consecutive months of disappointing U.S. employment figures, the Bureau of Labor Statistics reported 175,000 jobs had been added in February, while the unemployment rate nudged up to 6.7%.
WHAT’S NEXT?
Where do we go from here? The S&P 500 made it 50th high in the last 12 months. Yet volatility has not depressed to nearly the same degree as S&P prices have risen. The VIX added over 2% to finish at $14.21 Thursday up after another intraday dip under the $14 threshold. VIX options traded a modest 400,000 contracts on the day with the out of the money March $13 puts being bought at the ask in big blocks and totaling 20,000 on the day.
Eight of the ten S&P sectors were positive Thursday led by Basic Materials and Financials up ¾ of percent. Bank of America is back to multi-year highs closing at $17.35 up more than half a percent. The weekly $17.50 that go off the board at today’s close were active trading over 30,000 times much at the ask as new opening positions. The April $18 calls also got buy to open attention over 25,000 options traded.
BOTTOM LINE?
I am continuing to look for opportunities in the financial sector.
If we stopped buying tops in this market, there would have been plenty of missed opportunities. Onward and upward!
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For more market commentary from Larry Levin visit www.tradewithlarry.com
