A Day Of Extremes And Some Extreme Quiet

A Day Of Extremes And Some Extreme Quiet

While the stock market ended up doing a whole lot of nothing Wednesday, in other markets the word “extreme” could be applied, with different meanings.  



A Day Of Extremes And Some Extreme Quiet
A Day Of Extremes And Some Extreme Quiet

The S&P 500 stayed within a 10 point range, close to the highs reached yesterday. Fed Chair Janet Yellen testified before the House, as she did the Senate yesterday, but did not make significant news with her remarks.

Crude oil rallied two dollars even as US oil inventories had their biggest monthly increase ever. The glut shows no sign of ending. Pres. Obama vetoed a bill that would have allowed for the construction of the controversial Keystone XL pipeline. With oil prices so low, the possibility of extracting and refining shale oil and making much of a profit over production costs is fading. Shale no longer seems like the lucrative opportunity it did when oil was over $100 a barrel. Nevertheless, Bloomberg reported that TransCanada has been actively pressing the FBI and Homeland Security to treat anti-pipeline protesters as domestic terrorists, an unusual move by a corporation.

And one more extreme: the low price of coffee. It is good news for Starbucks, its shareholders, and all of you who may be sipping a Venti skinny latte as you read this. (Or are now thinking about going to Starbucks to get one.) Coffee futures touched a one-year low. Meanwhile, shares of Starbucks have outperformed the S&P 500 by 17% since last October.

Unfortunately, Nadex does not yet offer binary options on coffee futures. You can, however, trade binaries in crude oil and the US 500 (based on the S&P) for as little as $100 to start and with limited risk. 


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