Stocks & Bonds

Unusual Options Trading: Hedging, Sentiment Or Bullish Sign?

While the stock market saw big gains Tuesday, one options exchange reported a near-record level of relative put buying, as seen on the ISE equity call/put ratio. One of the recent themes that we’ve noted – and written about – has been the considerably depressed sentiment among various investor groups….

Stock Market Bulls Set Up Nicely… In The Near-Term

The U.S. stock market indices had a powerful session on Tuesday, followed by another good session on Wednesday. Volume could have been a little better on major U.S. indices but price spoke loud and clear… and this may benefit stock market bulls over the near-term. The Nasdaq 100 surged 2.1 percent on…

Return On Invested Capital (ROIC): Its Role In Market Valuations

Return: Measurement and Uses In Fiscal Year 2015, companies in the S&P 100 Index, ex-financials, posted Earnings Before Interest and Taxes (EBIT) of $678.9B. In isolation, this number conveys no information regarding the economic performance of the underlying companies. In order to assess economic performance, we need to calculate Return…

S&P 500 Futures Outlook For Traders – May 26

S&P 500 futures outlook for May 26, 2016 – With buyers still having much to prove, holding lower supports will be critical today. The move upward will be heavily contested, and upside motion into 2095-2097 should quickly fail, if the buyers get traction over 2091. At this writing, we are…

Market Update: Has Earnings Growth Reached A Trough?

Key Takeaway: A sustained rebound in earnings growth may require more than just favorable currency translations and is unlikely without improved top-line growth. Evidence that the environment for earnings growth is improving could come from an uptick in earnings estimates or higher interest rates. The year-over-year change in S&P 500 earnings…

Corporate Bond ETFs Offer Varying Opportunities And Risks

Corporate bond ETFs were one of the biggest disappointments of the fixed-income landscape in 2015. Their lackluster returns and weakening fundamentals suggested an undercurrent of fear in the credit markets despite the ongoing trend of stable interest rates. Fortunately, many of these corporate bond ETFs have turned a corner in…