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Dow Jones Industrial Average Slammed Again; VIX Skyrockets

VIX Looks to Make History; Plus, Are We Over-Bearish?

Aug 21, 2015 at 12:03 PM
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The Dow Jones Industrial Average (DJIA) remains on track for its third straight triple-digit drubbing -- as well as another 2015 closing low -- while the Russell 2000 Index (RUT) has entered correction territory, which could be a bad omen going forward. Stoking the bearish flames is weak manufacturing data out of China, mirrored by a disappointing purchasing managers index stateside -- which hit its lowest level since late 2013. Meanwhile, the broader S&P 500 Index (SPX) is set for its worst week since May 2012, falling well below numerous support levels, and the CBOE Volatility Index (VIX) -- or the market's "fear gauge" -- is on pace for its biggest weekly surge in the modern VIX era.

 

Continue reading for more on today's market -- and don't miss:

 

 

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Among the stocks with notable put volume is Brocade Communications Systems, Inc. (NASDAQ:BRCD), with the contracts changing hands at 16 times the normal midday rate. The network communications stock is up 12.5% at $10.93 on an earnings beat and resultant round of positive analyst notes. BRCD's most popular strike is the August 11 put, with nearly 1,200 contracts on the tape ahead of expiration tonight.

 

One of the leading winners on the Big Board is 58.com Inc (ADR) (NYSE:WUBA), up 5.6% at $44.31. Shares of the China-based online marketplace are shooting north despite some bearish brokerage attention late last night.

One of the worst performers on the Nasdaq is organic grocery name The Fresh Market Inc (NASDAQ:TFM), in the aftermath of the company's quarterly report and a round of negative analyst notes. At last check, TFM has surrendered 17.3% to trade at $21.98, and earlier notched an all-time low of $21.05.

 

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The CBOE Volatility Index (VIX) is up 5 points, or 26.3%, at 24.18.

 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.53, with puts more than doubling calls. At last check, SPY has lost 3.1 points, or 1.5%, to trade at $200.86.

 

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