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Dow Jones Industrial Average On Pace For Worst Month In Three Years

Are Selling Climaxes a Bullish Signal? Plus, The Oracle of Omaha's Oil Play

Aug 31, 2015 at 11:54 AM
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While the Dow Jones Industrial Average (DJIA) is well off its early morning lows, the big-cap bellwether remains in the red. Energy stocks are leading the losers today, with crude oil sharply lower. Fresh China concerns -- and reports of shady behavior that fueled major volatility -- are also weighing on traders' minds, on top of the impending September Fed rate hike decision. As of now, the Dow is facing a roughly 6.1% decline for August -- its largest monthly setback since May 2012. 

 

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

 

 

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Among the stocks with notable call activity is retailer J C Penney Company Inc (NYSE:JCP). The stock's call volume has nearly tripled put volume thus far, as traders are seemingly buying to open the weekly 9/4 11 9.50-strike call, expecting more upside in the next few days. JCP is 3.6% higher today at $9.27, after Deutsche Bank raised its opinion to "buy" from "hold," and upped its price target by $2 to $12. 

 

One of the top gainers on the Big Board is workout destination Planet Fitness Inc (NYSE:PLNT). Shares of the Wall Street newcomer have bounced 5.5% to $17.71, after a bevy of positive analyst notes this morning. PLNT is still 16.8% off from its all-time high of $20.68 from earlier this month. 

 

Beauty salon operator Regis Corporation (NYSE:RGS) is near the bottom of the New York Stock Exchange (NYSE), after being hit with a downgrade to "sell" at Northcoast. The shares have given back 4.7%, putting them at $11.15, and earlier hit a six-year low of $10.94. 

 

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The CBOE Volatility Index (VIX) is up 1 point, or nearly 4%, at 27.08, as it continues to ride atop its 10-day moving average. 

 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.86, with puts nearly doubling calls. SPY was last seen 1.2 points, or 0.6%, lower at $198.04. 

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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