Wall Street Strategists Not Enthusiastic From Here Apr 12, 2017 At the end of 2016, we published this post on year-end price targets for Wall Street strategists. For 2017, the average strategist projected the S&P 500 to post a gain of 5.5%. That’s actually bearish relative to the average annual projection going back to 2000. As shown below, on average, Wall Street strategists collectively project a gain of 9.6% each year. In 2016, strategists predicted the S&P would gain 8.4%, which ended up being just 1.1 percentage points away from the actual gain of 9.5% seen last year. That was the closest they’ve ever gotten to hitting the mark. Normally, they’re about 5.5 percentage points above the actual year-end change. Bloomberg tabulates these year-end estimates from strategists throughout the year. As mentioned above, at the start of 2017, the average year-end price target for the S&P 500 was 2,362. That would have translated into a gain of 5.5% based on where the index began the year. So where do strategists stand now that we’re already into the second quarter? They’ve gotten slightly more bullish, but they’re still looking for hardly any gains. As shown below, the average Wall Street strategist currently sees the S&P 500 ending 2017 at a level of 2,414. That’s an additional gain of 3% from the S&P’s current level. Normally a sanguine bunch, strategists are currently rather apathetic.
Yields are really moving lower during the Asian market hours, we will see if they will keep going lower tomorrow morning
Yeah, I play the earnings all the time. Depends on the person but there is two ways I'd suggest playing earnings. Maybe three. 1) The best results, supposedly (I've struggled with this) is selling naked options outside of the expected move. If the stock is trading at $50.00 and the straddle is trading for $2.00 then you'd want to sell the $48.00 put and the $52.00 call. At least. 2) The second best with lower losses but also lower gains, is the Iron Condor. Very similar to the first strategy, but then you buy the $47.00 put (Or $46.00) and you buy the $53.00 call (or the $54.00 call). This caps your loss potential if you're worried about a large move outside of the expected move. 3) Finally, the third option is what I've been trying recently. It's a ratio strangle. You buy one option and sell 2. So, again if we are dealing with stock xyz at $50.00 and expected move is $2.00, you buy the $48.00 put and you buy the $52.00 call and then you sell 2 puts and 2 calls to gain a credit. I did this with Lulu and even though it was a HUGE move against me, my break even was $57.50 and I got out around $52.50, losing $500.00. So with the 3rd option you still have the risk of the naked option. If he has any specific questions, feel free to ask, I'll be happy to do my best to explain.
spx is really battling around the 50 day, but while its doing that, many other individual stocks are giving way to their 50 day, market is walking a tight rope right now
Good morning Stockaholics! Happy Thursday. Here are your pre-market stock movers & news on this Thursday morning- 4/13 Thursday Market Movers & News: JPM, PNC, AAPL, DIS, GS, WFC, TSLA, PIR, TWNK, ADBE, HBI, SIX <-- click there to view! Hope everyone has a good trading day in here on this final trading day of the week!
Just a reminder in here that today is the final trading day of the week. Tomorrow (Friday 4.14) markets are closed for Good Friday.
Bonds looking strong again Banks earnings mostly good this morning and Jamie Dimon sounded pretty optimistic, but doesn't seem to help equities much today
Despite the recent weakness, the SPX is still less than 3% from its ATH. We need some big red days rather than just down single digit every day
as we're coming in to the final 10min. of the trading day/week here ... i just wanted to once again wish everyone a very happy easter weekend. enjoy the good weather! and a big thx to all of you who contribute here on a daily basis! we'll catch you all next week.
You monsters already have a VIX at 16 haha. Spoiler I think we get VIX 17, but first SPX bounce Thanks stock1234 and Cy -- hope your nephew recovers quickly!
