Trader Talk – 6/28/12

Stock market averages fell early and are near session lows heading into the final 90 minutes of trading Thursday. The highly-anticipated 2-day EU summit has thus far failed to stir much enthusiasm, as the euro is down .4 percent and testing 1.24 against the buck for the first time since early-June. Equity markets traded mixed across Europe Thursday. However, the Dow Jones Industrial Average opened with losses following in-line readings on first quarter GDP (1.9 percent) and jobless claims (386K). The selling gathered some additional momentum shortly after 10:00 ET after the Supreme Court upheld most of the key tenets of Obama’s healthcare law. The reaction in the healthcare sector was mixed; with hospital names scoring gains, but big losses suffered in the managed care and commercial health insurance names. Meanwhile, JP Morgan (JPM) is reeling for a 5 percent loss and the biggest drag on the Dow on a New York Times article suggesting the bank understated its trading losses. The industrial average is down 163 points and 14 points from session lows. The NASDAQ is down 55 points. CBOE Volatility Index (.VIX) is up 1.53 to 20.98 amid increasing volumes in the options market. 4.7 million calls and 4.8 million puts traded across the exchanges so far. Fred Ruffy

Risk Off!
VIX: +1.50, 20.95
Gold: -$25, $1533.5
Crude: -$2.50, $77.71
Ten-Year: +14/32, 1.573%

In-line: Jobless Claims, GDP

Landmark Ruling – Obamacare. Hospitals Rally.

“ Internal models at the [JP Morgan] bank have recently projected losses of as much as $9 billion. In April, the bank generated an internal report that showed that the losses, assuming worst-case conditions, could reach $8 billion to $9 billion, according to a person who reviewed the report. With much of the most volatile slice of the position sold, however, regulators are unsure how deep the reported losses will eventually be. Some expect that the red ink will not exceed $6 billion to $7 billion…..JPMorgan plans to disclose part of the total losses on the soured bet on July 13, when it reports second-quarter earnings.” NY Times – LINK
$9 bln loss is ‘largely ruled out’. Losses will be between $4-6 bln – CNBC

Headlines that Senator Reid will attempt to pass Highway and Student Loan Bills today – Briefing

Heat Wave – Records Fall

Movers
Symbol Last Change %Change StdDevs
SNTA 4.57 -2.68 -37.0% 7.16
SURG 4.89 +1.02 +26.4% 7.20
GEVO 5.29 -1.52 -22.3% 2.28
VRTX 51.31 -9.80 -16.0% 6.63
OREX 5.69 +0.77 +15.5% 2.68
ORBK 8.01 -1.42 -15.1% 8.09
BCS 10.57 -1.76 -14.3% 4.56
ARNA 9.93 -1.46 -12.8% 1.51
RBS 6.45 -0.88 -12.0% 3.20
HMSY 30.96 +3.17 +11.4% 7.25

Shakers (Implied volatility Movers)
WLP 25.5% -21.6 -45.8%
HMA 47.2% -34.7 -42.4%
AET 28.7% -19.8 -40.8%
CI 24.6% -15.0 -37.8%
VRTX 47.9% -26.8 -35.9%
CVH 31.2% -16.5 -34.7%
HUM 28.1% -14.6 -34.1%
UNH 26.7% -13.2 -33.2%
HCA 34.8% -17.3 -33.2%
HK 53.6% +12.4 +30.1%

52 Week Highs
28 new highs: AIRM AOL AUXL BLDR CATM CLGX COST CTFO CYH DVA DX HOMB IMGN IPHS ISIS LNDC MMS MTH NSM O OHI OREX SMBL TCAP TMH WNR WTR XOMA

52 Week Lows
74 new lows: ARX ASX ASYS AUDC AVX AWC AXU BJRI BORN BRFS BSDM CCMP CEDC CHKP CHU CIM CNQ CS CTIC CVVT DECK DMND EGI ENVI ETFC EXM EXPD FET FPO GNK GPRE HPQ HUSA IGOI IL ITUB IXYS JKS JNPR MPO MRVL MXWL NAK ORBK OXGN PBR PBR/A PDH PMFG RIC ROVI SEED SI SID SIMG SLH SMS SSN STBZ SYMC TG THRM TLAB TNP TSYS TTWO TXCC ULBI VLCCF WBMD WTW XRA YZC ZX

Notable Flow
AONE – Bearish activity detected in A123 Systems Inc with 4951 puts trading, or 5x the recent avg daily put volume in the name. Shares near $1.4699 (-0.0801) with ATMIV lifting by 22.87 point and 59% of todays put premium trading offer side. (Trade-Alert) 9:51

OREX – Bullish flow detected in Orexigen Therapeutics Inc with 2727 calls trading, or 2x the recent avg daily call volume in the name. Shares near $5.545 (0.625) with ATMIV lifting by 12.27 point and 52% of todays call premium trading offer side. (Trade-Alert) 10:01

RRD – Bullish flow detected in RR Donnelley and Sons Company with 2650 calls trading, or 2x the recent avg daily call volume in the name. Shares near $12.07 (0.28) with ATMIV lifting by 2.90 point and 56% of todays call premium trading offer side. (Trade-Alert)

PETM – Bullish flow detected in PetSmart Inc with 2123 calls trading, or 3x the recent avg daily call volume in the name. Shares near $65.94 (0.42) with ATMIV lifting by 1.84 point and 96% of todays call premium trading offer side. (Trade-Alert)

MAR – Bearish activity detected in Marriott International Inc with 2545 puts trading, or 3x the recent avg daily put volume in the name. Shares near $37.42 (-0.74) with ATMIV lifting by 2.58 point and 86% of todays put premium trading offer side. (Trade-Alert)

As of 10:31ET, option volume exceeding the normal time-weighted level is noted in the following stocks: STZ, OREX, AOL, FDO, CI, BCS, IYT, PAYX, BX. 10:31

Over the first hour 62509 contracts have traded in SPX today, 0.56x the recent hourly average, with 22858 calls and 39651 puts trading as the index trades near $1319.21 (-12.64). Front term atm implied vols are near 18.5% and the CBOE VIX is currently near 20.68 (1.23). 10:31

Tags: featured, Sentiment

Category: Market Update