The S&P 500 declined by about 2% in October after having run up by about 14% from the beginning of the year. We are now entering the time of year when equities have generally experienced their best performance.
Construction spending, October ISM Manufacturing Index, Consumer Confidence, Initial Unemployment Claims, Q3 Productivity, Retail Sales and the China PMI were all in-line to better-than expected.
Copart, Inc. (CPRT) is breaking out to new highs. Yesterday, there was a buyer of 1,000 Nov 25 calls. This was 23x the normal volume. Technically, the stock looks very strong. Rockwell Automation, Inc. (ROK) is just breaking out through resistance. Yesterday, there was a buyer of the in-the-money ROK Nov 70 calls. The volume was 6x normal. The company reports earnings on Nov 5. Humana (HUM) which is both an Obamacare (election) and earnings play (earnings on Nov 5) saw bullish options activity yesterday with buyers of the Nov 80 calls.