Intraday Market Commentary From Stifel Nicolaus - August 18

Elliot Spar of Stifel Nicolaus provides today's intraday stock market commentary, in a new section which we hope will become a staple to Zero Hedge.

Buyers stepped up in late morning trade, first in the Nasdaq 100 and an hour later in the S&P and Russell 2000. The NYSE a/d has been working its way higher for the last hour and is now 2 to 1 positive with the S&P up just 6 points – a positive. The 10 Year notes have given back much of their earlier gain and that in-turn inspired stock buyers. At this time, the major averages are at or slightly above yesterday’s highs. If the NYSE a/d can hold at better than 3 to 2 positive on any minor dips in the next two hours, that should bring out buyers. However, at 8:30 am tomorrow, we get the reality check in the form of the weekly unemployment claims. Bottom-line: I’m a profit-taker and or hedger with the S&P 500 in the 1105 to 1116 area.

INDEX IN FOCUS

PHLX Bank Index
BKX 46.48 (+ .40) Last Tuesday BKX broke down out of an ascending triangle. Needs to get back over 48 soon or a test of July’s low at 44.39 would be targeted.

EXPIRATION REMINDER

SPX, MNX, RUT – August expiring options all stop trading at the close on Thursday. Settlement is on Friday’s opening.

UNUSUAL VOLUME

iSHARES Russell 2000 Index

IWM 2 63.19 (+ .57)
Large buyer in the a.m. on the Sep 59 puts. 89,000 trade on the ISE vs. open interest of 37,803. Probably put some pressure on the Russell 2000 early on as market makers laid off the risk in Russell futures and/or IWM by selling them.

Full report pdf

Comments

[Turd Ferguson]

For some levity, I give you the funniest 6 minutes on youtube.

http://www.youtube.com/watch?v=BWzI_Wn0ZwM

[London Dude Trader]

This guy doesn't understand how CME SPX options work. The Aug options are physically settled and expire at the close on Friday. It's only the quarterlies that expire and settle at the cash open on Friday

[functionform]

g4i bitchez, http://www.cboe.com/products/indexopts/spx_spec.aspx

Last Trading Day:
Trading in SPX options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.

[London Dude Trader]

You're right, I was referring to the SPX and ES options on futures traded at the CME.

[10044]

"Buyers" stepped in!! LOL!!

[Borat]

A lot of selling on the highs...market is topping again..

[n2dark]

looking forward to tomorrow's 500k+ initial claims and with the market looking like swiss cheese 1070 will not stand any chance

[lsbumblebee]

Better than Yahoo!Finance. I guess.

[TooBearish]

GM IPO levitation act bitchez

[-1Delta]

Baltimore trading desk...

[Herry12]

There are certainly a lot of details like that to take into consideration.I read and understand the entire article and I really enjoyed it to be honest.
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