This morning, the S&P 500 Index e-mini futures (ES-H3) are trading higher by 2.50 points to $1514.25 per contract. All of the major stock indexes are climbing higher after the State of the Union address by President Obama. Traders should still be careful at this time since the major stock market indexes are very overbought and extended in the near term. Most of the main talking points in President Obama's speech were already expected for the most part.
Today is also the Wednesday before options expiration. This is usually a volatile trading day. Traders should watch for erratic action in stocks such as First Solar Inc (NASDAQ:FSLR), Green Mountain Coffee Roasters Inc (NASDAQ:GMCR), Netflix Inc (NASDAQ:NFLX), and Coinstar Inc (NASDAQ:CSTR) to name a few equities. Often, the institutional traders will play a lot of games with these stocks and others that are highly traded by the retail options trader.