Dow, SPX Tag 3-Month Highs as Buyers Return in the Eleventh Hour

Learn how to start trading options now!

Major stock markets claimed another week of victories

by Jim Cunningham (jcunningham@sir-inc.com) 8/10/2012 4:40:16 PM

Stocks quoted in this article:

"Other than a few select earnings reports this morning, there really weren't a lot of market-moving events. The market drifted sideways all week and things didn't change much today," noted Schaeffer's Senior Equities Analyst Joe Bell. "With the S&P 500 Index (SPX) hovering just below its May 2012 peak, a pullback wouldn't be a surprise here. That being said, we still think the overall negative sentiment surrounding this market makes any and all pullbacks nice buying opportunities." After a slow session, the Dow Jones Industrial Average (DJI) stayed in the green and notched its sixth daily close atop 13,000.

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

3 Wall Street notables saw a significant rise in bullish options activity.
Are sinking television ratings for CNBC another reason for contrarians to smile?

And now, a look at the numbers...

The Dow Jones Industrial Average (DJI – 13,207.95) marked its fifth straight settlement atop 13,100, and ended with its best daily close since May 2. In the last hour of trading, the Dow tore through breakeven and notched a 42.8-point, or 0.3%, rise. Twenty-one of the 30 components leapt higher today, with Hewlett-Packard Company's (NYSE:HPQ) 1.5% climb leading the way. Meanwhile, American Express Company (NYSE:AXP) paced the nine losing issues with a 1.1% deficit. For the week, the blue chip barometer turned in a 0.9% ascent.

The S&P 500 Index (SPX – 1,405.87) enjoyed a sixth straight win and moved higher above the 1,400 level. The SPX added 3.1 points, or 0.2%, for the session -- securing its best daily close since April 3. Meanwhile, the Nasdaq Composite (COMP – 3,020.86) ended with a fractional gain, which pushed the index atop 3,020 for the first time since May 3. The SPX was up 1.1% for the week, while the COMP rallied 1.8%.

The CBOE Market Volatility Index (VIX – 14.74) declined 3.5% today and drifted to its worst price since March 30. The VIX dropped off 5.8% during the week.

Today's highlight: Bell didn't hesitate when asked about today's action. According to him, the best thing occurred at the closing bell. "I've been working on the trading desk at Schaeffer's for about six years and this goes in as one of the top five most boring weeks I've experienced."

Turning to today's major market stories...

Lower viewership for CNBC could have contrarian implications for this bull market. Schaeffer's Senior Technical Strategist Ryan Detrick explains more.
Pre-earnings options activity reached fever pitch on Dick's Sporting Goods Inc (NYSE:DKS), The TJX Companies, Inc. (NYSE:TJX) and The Home Depot, Inc. (NYSE:HD).
NVIDIA Corporation (NASDAQ:NVDA) and Advance Auto Parts, Inc. (NYSE:AAP) were tagged with earnings-induced analyst adjustments.
Option Trends: DryShips Inc. (NASDAQ:DRYS), Ford Motor Company (NYSE:F), and Vringo, Inc. (NYSEAMEX:VRNG).
The current trend of declining short interest can be a catalyst for higher equities.
Last-minute, weekly options traders tried for fast money with Facebook Inc (NASDAQ:FB).
Highs & Lows: Two Wall Street freshmen suffer dramatic post-IPO pullbacks.
After a drastically slow week, can options expiration spark more interest for the market?

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

Page 1Page 2

Keywords:

More Market Recap Articles

Wednesday, June 19, 2013
Bernanke Remarks Spark Selling Pressure; Dow Sheds 206 Points

For most of the day, the Dow Jones Industrial Average (DJI) drifted sideways in an extremely narrow range around the breakeven point. This sideways momentum was a distant memory by the close, however, as the index surrendered 206 points, or 1.4%, to settle at 15,112.19. This drop shifted the Dow back south of its 10-day moving average, although it did finish a hair above its 40-day trendline. All 30 Dow components finished in the red, paced by Verizon Communications (NYSE:VZ), which dropped 2.9% on the day. The "best" performer was Hewlett-Packard (NYSE:HPQ), which gave back less than 0.1%.

Tuesday, June 18, 2013
Dow Busts Sixth Straight Triple-Digit Move, Adds 138 Points Ahead of Fed

The Dow Jones Industrial Average (DJI) rallied 138.4 points, or 0.9%, to 15,318.23, ending north of its 10-day and 20-day moving averages for just the second time in June. Among the Dow's 30 components, all but Merck (NYSE:MRK) and Microsoft (NASDAQ:MSFT) finished in the black. Leading the pack was General Electric (NYSE:GE), which tacked on 2.4% by the close.

Monday, June 17, 2013
Dow Pares Gain to 110 Points as Fed Chatter Hits Fever Pitch

The Dow Jones Industrial Average (DJI) logged its fifth consecutive triple-digit move, adding 109.7 points, or 0.7%, to end at 15,179.85. However, the blue-chip barometer couldn't climb back atop its 20-day moving average, which has stifled all but two daily closes in June. Twenty-five of the Dow's 30 blue chips ended higher, led by Cisco Systems' (NASDAQ:CSCO) 2.5% rise. Meanwhile, Verizon Communications (NYSE:VZ) paced the declining minority, surrendering 0.7%.

Friday, June 14, 2013
Chop Continues, S&P 500 Loses 1% for the Week

The Dow Jones Industrial Average (DJI) gave back more than half of yesterday's gains, dropping 105.9 points, or 0.7%, to close the week at 15,070.18. Just four of the index's 30 components gained ground today, as Verizon Communications (NYSE:VZ) paced the advancers with a 0.9% uptick. Johnson & Johnson (NYSE:JNJ) was unchanged on the day, and American Express (NYSE:AXP) brought up the rear, down nearly 3%. Although the Dow did finish the week in the red by 1.2%, it was roughly 117 points above its intra-week low (and north of the 15,000 mark).

Bernie Schaeffer On Charts >>

Mid-Caps Nearing a Triple of March 2009 Lows

Looming Triple Low May Cause MID to Cluster Around 1,200

Posted By: Bernie Schaeffer

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%

Partner Center