Bulls Claim Victory in Shortened Session; Dow Jumps 72 Points

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The Dow notched its first daily settlement atop 12,900 since May 8

by Jim Cunningham (jcunningham@sir-inc.com) 7/3/2012 1:35:20 PM

Stocks quoted in this article:

After a very sluggish start to the pre-holiday session, the Dow Jones Industrial Average (DJI) finally got moving, ending at its highest level in nearly two months. "It was simply a light volume day, with very little news out there," observed Schaeffer's Senior Technical Strategist Ryan Detrick. "We've found these days tend to trend higher, and that's exactly what happened."

Keep reading to see what else was on our radar today:

How does a mid-week holiday usually pan out for stocks?
Plus, selling climaxes and further proof that the market has reached a major bottom.

And now, a look at the numbers...

The Dow Jones Industrial Average (DJI – 12,943.82) spent just a few minutes lower this morning, but made the shift into positive territory, closing the abbreviated session 72.4 points, or 0.6%, higher. Twenty-three of the 30 blue chips ended with gains, as Caterpillar (NYSE:CAT) and Alcoa (NYSE:AA) led the winning components with upticks of 3.3% and 3.2%, respectively. Home Depot's (NYSE:HD) 2.6% tumble paced the seven losing issues.

The S&P 500 Index (SPX – 1,374.02)* edged out a victory today, adding 5.3 points, or 0.4%. Meanwhile, the Nasdaq Composite (COMP – 2,976.08) posted an increase of 24.9 points, or 0.8%, turning in the best performance of its fellow peers.

The CBOE Market Volatility Index (VIX – 16.65) didn't move much by the closing bell, ticking 0.2% lower.

Today's highlight: "After a shortened summer session, it'll be nice to have tomorrow off to enjoy the holiday with family and friends," said Detrick.

Turning to today's major market stories...

Independence Day and market movement: Schaeffer's Senior Quantitative Analyst Rocky White studied the impact of the mid-week holiday on the SPX.
Ryan Detrick suggested that the abundance of stocks making selling climaxes could prompt a summer rally.
The Coca-Cola Company (NYSE:KO) and Groupon Inc (NASDAQ:GRPN) were among the equities making record-breaking runs today.
Analysts weighed in on biotech issue Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN) and telecom giant QUALCOMM, Inc. (NASDAQ:QCOM).
Put activity neared an annual peak on MAKO Surgical Corp. (NASDAQ:MAKO).
Xerox Corporation (NYSE:XRX) put players rolled their bets up and out.
As Agrium Inc. (NYSE:AGU) danced beneath new-high territory, call players initiated new positions.
Best Buy Co., Inc. (NYSE:BBY) continued to see a surge in options volume.
Front-month calls have been flying off the shelf on Yamana Gold Inc. (NYSE:AUY).
Don't forget to check out the July edition of Bernie Schaeffer's Option Advisor market commentary.

For today's activity in commodities, options, and more, head to page 2.

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Options Flow Recap

Most Active Option Strikes - Stocks

Symbol	Today's Volume	Expiration	Strike	Put Call	% on Bid Price	% on Ask Price
PFE	357407	7/20/13	35	P	4.9%	1.1%
PFE	346154	7/20/13	35	C	1.2%	1.5%
GE	122352	6/22/13	23	C	15.0%	1.2%
GE	96046	6/22/13	22	C	14.8%	0.3%
GE	78570	1/18/14	17	C	0.0%	0.0%
S	58529	8/17/13	7	C	18.6%	1.7%
GE	56898	1/18/14	15	C	0.1%	0.0%
S	53815	7/5/13	7.5	C	4.7%	61.9%
MU	35323	7/20/13	16	C	22.8%	33.7%
ZTS	33817	7/20/13	40	P	1.2%	2.0%

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