For a second day, a handful of the sector ETFs saw large opening buyers electronically on ISE this morning. As we noted shortly after the opening bell Monday, large blocks of June puts were bought-to-open on the SPDR Industrials (XLI) and SPDR Basic Materials ETFs (XLB) early-yesterday. The focus shifted to April contracts Tuesday morning. SPDR Oil and Production ETF (XOP) slid $1.19 to $57.05 and 35,981 April 50 puts traded on the ETF for 81 cents per contract. SPDR Metals and Mining ETF (XME) is off $1.59 to $48.37 and 31,292 April 43 puts traded for $1.05 apiece. SPDR Basic Materials (XLB) is off 74 cents to $35.95 and 30,852 April 35 puts traded for 92 cents each. These three hefty premium purchases are opening buyers, according to data from the ISE. The bearish action in these economically-sensitive groups comes the day after China lowered its economic growth forecast. Meanwhile, Greece is still hoping to avert a messy default with key results from Private Sector Involvement (PSI) due Thursday. Pre-jobs data jitters might be a factor as well. ADP releases numbers tomorrow before the Labor Dept’s report Friday morning.
Category: All ETFs
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.