China hits market with a double whammy

After the market fell on Tuesday, following a Chinese devaluation of their currency, the Chinese devalued their currency again this Wednesday morning, sending US stocks reeling. After a 1% drop yesterday, the S&P 500 is down 1.25% in morning trading. West Texas Intermediate crude oil briefly fell below $43 on Tuesday, but is back over $44 today. Gold has rallied strongly and is now trading at $1,118.

Hit hard in the current adjustment have been Apple (AAPL), down more than 7% since Monday’s close, and Alibaba (BABA), down 7% just today.

At present, stocks are down. The S&P 500 is down 0.97%, the DJIA is down 1.13% and the NASDAQ is down 1.11%.

Here are your Wednesday morning market metrics. The industries showing strength today include Multi-Utilities, Energy Equipment & Services and Electric Utilities. The industries showing weakness today are Airlines, Technology Hardware, Storage & Peripherals and Diversified Telecommunication Services..

The VIX is up 12.62% to 15.44 after closing yesterday at 13.71. The most active options this morning is SPDR S&P 500 ETF (SPY) with 6,008 August-21 expiring $205 puts and 5,401 August-21 expiring $208 puts changing hands. The total put-call volume ratio is 1.08 (481,292/447,654). NYSE Adv/Dec 906/2,053. NASDAQ Adv/Dec 830/1,615. 

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can follow Julian’s daily hedged options trades and his unfolding market commentary via twitter: @JulianClose_MIC.

Julian Close

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.

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