After the open… traders are responding with optimism to the Republicans' gaining control of the Senate. The S&P 500 is up a modest 0.4%, but that is enough to keep it in record territory. Tesla (TSLA) investors appear jittery, as if expecting negative news when the company posts its earnings after the close of market, but happy Alibaba (BABA) investors have pushed BABA stock to nearly $110. Oil is still cheap, natural gas is getting more expensive and gold is at a multi-year low.
Here are your Tuesday morning market metrics. Industries doing well today include Independent Power, Food Products and Electric Utilities. Industries showing weakness include Metals/Mining, Airlines and Paper & Forest Products.
The VIX is down 1.5% to 14.66 after closing on Tuesday at 14.89. Here is a first, at least in my experience: the top ten most active option strikes are all Apple (AAPL). By quick estimation I see at least 420,000 changing hands, (which is extremely high) with the largest single strike being 148,485 January 71.43 calls. The put-call volume ratio is 0.8, (298,279/239,159). NYSE Adv/Dec 1,637/1,277. Nasdaq Adv/Dec 1,279/1,091.
Julian Close has been a business writer since the first day of the twenty-first century, having written for PRA International and the United Nations Department of Peacekeeping. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. He became a stockbroker in 1993, but now works for Fresh Brewed Media and uses his powers only for good. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.