The Week Ahead

Editors Note:  We would like to welcome JJ Kinahan and his Crew from TD Ameritrade to the CBOE Options Hub. 

JJ began his career as a CBOE market maker in 1985, trading primarily in the S&P 100 (OEX) and S&P 500 (SPX) pits. He also worked for ING Bank, Blue Capital and was Managing Director of Option Trading for Van Der Moolen, USA. In 2006, Kinahan joined the Thinkorswim Group, which was eventually acquired by TD Ameritrade. After leading the Educational Events Team, helping thousands of investors,he became the Managing Director of Active Trader Services in 2009.

JJ Kinahan, is a CNBC Regular and is frequently quoted in the Wall Street Journal, Financial Times and Reuters News, along with many other respected media outlets.  Welcome JJ and the other contributors from TD Ameritrade.

Happy Anniversary

I would like to kick-off my first TD Ameritrade column by wishing a very Happy Anniversary to the CBOE.  Having spent 21 years trading there, I can tell you it is a great place with great people.  All the best for many more!

Given that it is Monday, let’s discuss the week ahead. We are fresh off a disappointing jobs report and the worst week the markets have seen so far in 2013, but keep in mind the market shrugged off much of the jobs report damage in the final two hours of trade on Friday and significantly mitigated the damage to the indexes on the close.  When you combine that with the VIX being basically unchanged, it is a very interesting tape action heading into what promises to be an exciting week of trading. 

We will kick the week off today with the unofficial start to earnings season with our friends from Alcoa today after the bell.  As for earnings, Financials is the major sector that will get the spotlight as we have both Wells Fargo & Company (WFC) and JPMorgan Chase & Co. (JPM) with their much-anticipated reports on Friday.  Many on both Wall Street and LaSalle Street believe that if we are to continue to set new records in the S&P, this will be the sector that has to be the true leader as it is the one that will truly signal that housing and consumer confidence is back when the analysts dig in to the numbers. Government speakers will not be absent this week, as President Obama will unveil his budget blueprint (who won’t be excited about name calling and disagreement in DC) and Chairman Bernanke will provide testimony of Fed minutes. We have a slew of economic numbers ranging from the Investor Movement IndexSM from TD Ameritrade on Monday afternoon to import/export prices on Thursday. Another number I am going to watch carefully this week is Friday’s retail sales.  Last Friday’s jobs report showed that this is one sector that’s being impacted dramatically by job loss, so there are lower expectations for Friday’s number. When you consider that earnings are also that morning, it is shaping up for a day of great trading.

And finally, on a lighter note, don’t forget the NCAA finals tonight and the Masters Golf Tournament kicking off on Thursday………..Have a GREAT week.

JJ Kinahan

Chief Derivatives Strategist

TD Ameritrade

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