Real-Time Market Insights
Hot Stock News for Options Traders

Dow Jones Industrial Average Marches Higher; Yellen Heads Back to the Hill

Asian markets were buoyed by better-than-expected Chinese trade data

by 5/8/2014 8:05:06 AM
Stocks quoted in this article:

The Dow Jones Industrial Average (INDEXDJX:DJI) is on pace to extend Wednesday's triple-digit gain, with futures pointed modestly higher ahead of the bell. The Federal Reserve will remain in focus in today's session, as Janet Yellen heads back to the Hill to testify in front of the Senate Banking Committee. Yesterday, in her first day of congressional testimony, the head of the central bank signaled the need for a continuation of support for the U.S. economy. Also on today's docket are weekly jobless claims, which are due at 8:30 a.m. ET.

Meanwhile, as Schaeffer's Senior Trading Analyst Bryan Sapp noted, "The Russell 2000 Index (RUT) traded below its 200-day moving average for the entirety of Wednesday's session, but it looks like buyers won't fully submit until the 1,100 level is also broken. Yesterday morning's flush lower was met with strong buying, and the index was propped up above that round-number area."

Plus, our Trading Topic of the Week -- 5 Ways to Win with Aggressive Trades: Keep holding periods brief. This is one scenario where patience isn't a virtue -- to preserve capital, act quickly to shut down underperforming trades.

And now, on to the numbers...

Dow Jones Industrial Average, S&P and Nasdaq futures

Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are about 23 points above breakeven.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 1,183,947 call contracts traded on Wednesday, compared to 798,214 put contracts. The resultant single-session put/call ratio dipped to 0.67, while the 21-day moving average rose to 0.62.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

"Anecdotally, I'm starting to see a lot of talk about the potential head-and-shoulders top that's forming on the Nasdaq 100 Index (NDX)," continued Sapp. "Generally, whenever mainstream media picks up on chart patterns like this, it's a contrarian signal. I would closely monitor the amount of talk there is regarding this formation, as a consensus 'top formation' sentiment among market participants would likely be a signal to take the other side and play technology bullishly."

Currencies and Commodities

  • The U.S. dollar index is 0.1% lower ahead of the bell to trade at 79.10.
  • Elsewhere, crude oil is flirting with a 0.2% drop this morning, with the commodity last seen at $100.62 per barrel.
  • After losing its perch atop the $1,300 mark on Wednesday, gold is on the mend, with the malleable metal up 0.4% at $1,293.70 an ounce.
Currencies and commodities

Earnings and Economic Data

Weekly jobless claims will highlight today's economic docket. Apollo Global Management (APO), CBS Corporation (CBS), Clean Energy Fuels (CLNE), Dean Foods (DF), Dendreon (DNDN), DISH Network (DISH), JA Solar (JASO), Monster Beverage (MNST), NVIDIA (NVDA), Priceline (PCLN), Silver Wheaton (SLW), Symantec (SYMC), and Vanda Pharmaceuticals (VNDA) will release their quarterly earnings results.

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