Outside the battered energy segment, the financial services were the worst performing sector so far this year, as investors turn away from banking stocks over fears of the growth of loans to defects caused by the disruption of the economic activity of the sars coronavirus crisis.
However, the exchange of stocks – the companies facilitate the trading of equities, derivatives, and commodities – have outperformed the group of the order of 15% in the middle of the surge in trading volumes in the wake of the increased volatility in most asset classes throughout March and April. While the average daily volume (ADV) has eased a bit last month, being the vagaries of the energy markets kept trading volumes are well above long-term averages.
Below, we take a more detailed look at the three major stock exchanges and review of their April trading activity. We will also turn to the company chart in order to identify potential swing trading opportunities.
Intercontinental Exchange, Inc. (ICE)
Atlanta-based Intercontinental Exchange, Inc. (ICE) operates exchanges and clearing houses for commodities, financial, fixed income securities and capital markets, including the New York Stock Exchange (NYSE). Building on the record trading turnover in March, NYSE ADV to cash in on stock the last month has increased by 70% year on year (yoy) in April, while equity options ADV increased 13%. The energy ADV has jumped by 45% more than last year at the same period, with a record of the energy of the interest of 46.6 million of batches reached on 24 April. As of May 6, 2020, the International Exchange of stock has a market capitalization of $50.88 billion, offers a 1.35% dividend yield, and trades at nearly 15% more in the past month.
Since the creation of its 52 week low at the height of the coronavirus-induced sell-off, the company’s shares have staged a V-shaped recovery, with the price closing above the 200-day simple moving average (SMA) in the session Tuesday. Those who take a trade should consider using a trailing stop order to exploit the recent progress. For example, place an initial stop below this month’s low at $87.51 and the address under each under each higher swing low. Limit the risk by modifying the stop order to the equilibrium point if the price moves above key resistance at$100.
CME Group Inc. (CME)
CME Group Inc. (CME) operates the exchanges that trade futures contracts, and derivative contracts on interest rates, equity indexes, foreign exchange (FX), energy, metals and raw materials. The $ 64-billion Chicago-based firm saw its April equity index ADV increase of 119% year-on-year. The sales of its popular Micro E-mini future on Shares totaled $ 1.7 million contracts per day, while natural gas futures and options energy saved ADV year-over-year growth of 60% and 39%, respectively. Although CME Group stock has slipped 10.64% on the year, he has gained almost 3% over the last month, as of May 6, 2020. The company also publishes a 1.96% dividend yield.
After the consolidation of several weeks, CME shares have rallied over 3% Tuesday, from the support of a flag pattern at$ 175. In addition, given that the relative strength index (RSI) is well below the levels of overbought, the price has ample room to keep moving higher in the short-term and medium-term. Traders who take a long position here should take profit of the order nearly essential to the horizontal line of resistance at$ 220, but limit losses if the stock closes below the May 4 low of $170.67.
Cboe Global Markets, Inc. (CBOE)
Cboe Global Markets, Inc. (CBOE) operates as one of the options of foreign exchange through the five segments: the Options, the U.S. Equity Futures, European stocks and Global FX. Recently, the company has suspended operations on its Chicago Board Options Exchange (CBOE) open outcry trading floor as a precautionary measure to prevent the potential spread of COVID-19. Despite the firm reporting a 23% fall in the overall trading volume compared to March, the total options turnover on the bilateral trade reached 200 million contracts last month, up from 137 million contracts in April 2019. Trading just below $100, $10.85 billion dollars of market capitalization and the performance of 1.53%, the stock has risen by 10.4% over the last month as of May 6, 2020.
Cboe shares have rallied into the 50-day SMA in mid-April, but the closely watched moving average acted as a firm line of resistance since. A close above the flag yesterday, may bring the bulls back from the touch line to the supply prices to increase in the days to come. Those who buy at the current levels should aim to book profits between $112.5 and$ 125, if the price is likely to find resistance from a previous seven-month trading range. Manage downside by placing a stop-loss order below the May low at $92.03.