Markets Improve To Start Week

Markets Improve To Start Week

After last week's uninspiring performance, traders were likely relieved to see that all three major indices opened with a relatively strong position on April 28.

Despite many economists continuing to eye the growing tensions between Russia and Ukraine as a source of market instability, recent sanctions from the White House have indicated that the U.S will continue to involve itself in the proceedings, and the market has responded positively. The Dow Jones Industrial Average started the week up 70.39 points, a 0.43 percent boost that puts it at 16,431.85 as of 11:30 a.m. Eastern. However, there is still some distance between its current numbers and its April 4 high of 16,609.85. The S&P 500 has eked its way into the top spot of the three major indices with a 9.68-point, or 0.52 percent, gain. Currently at 1,873.08, it is still short of its one-month high of 1,894.52 from April 4. The most sluggish out of the gate, though not by much, the NASDAQ is up just 0.39 percent, or 15.6930 points. This puts the index at 4,091.2540, well below 4,283.0260, its one-month high that was reached on April 3.

But there is cause for optimism. Though the performance of the three major indices is nothing to write home about, they do stand as an indication of the optimism that some industry experts are calling for in the economy. New numbers released today by the National Association of Realtors show that pending home sales in March rose 3.4 percent, marking the first gain in nine months. This, in turn, is a signal that existing home sales are likely to increase. With that being said, May is just a couple of days away, marking the time of year when stocks tend to underperform. According to CNNMoney, analysts may be shifting to more defensive stocks ahead of the expected slowdown. "At this time of year, it is natural for investors to question whether they should reduce their equity exposure as we move closer to the historically vulnerable May through October period that has coined the old Wall Street adage 'Sell in May,'" said equity strategist Sam Stovall.

Trading volatile markets with Nadex. Are the markets preparing for a rally or is this a false increase ahead of May's traditional slowdown? With binary options trading through Nadex, traders have the ability to seek profits while capping risk, even when the market is making unpredictable movements.

This information has been prepared by Nadex, a trading name of North American Derivatives Exchange, Inc., prepared by independent third parties contracted by Nadex or reproduced form third party news agencies. In addition to the disclaimer below, the material on this page does not contain an offer of, or solicitation for, a transaction in any financial instrument. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.