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Dow Jones Industrial Average Gains; Travel Stocks Slip

A Better Way to Trade Overbought VIX?

Nov 16, 2015 at 12:11 PM
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The Dow Jones Industrial Average (DJIA) is modestly higher at midday, bouncing back from pre-market jitters in the wake of last week's terrorist attacks in Paris. Another wider-than-expected contraction in the Empire State manufacturing survey is also failing to dampen investor sentiment. On the commodity front, crude oil has turned sharply lower on continuing oversupply concerns, while gold is getting a much-needed safe-haven lift after Friday's five-year low.

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

 


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Among the stocks with notable call volume is Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT), fresh off a major M&A announcement. Currently, the contracts are crossing at triple the expected midday rate, with buy-to-open activity detected at the out-of-the-money December 77.50 call.  Technically, HOT shares are down nearly 5% at $71.30.

One of the biggest decliners on the Nasdaq is retailer Urban Outfitters, Inc. (NASDAQ:URBN), down 9.3% at $22.20, and fresh off another three-year low of $22.11. The company this morning announced it will purchase the Vetri Family restaurant group, and will also report earnings after the close.

One of the leading losers on the Big Board is Vipshop Holdings Ltd (NYSE:VIPS), down 10.8% at $12.13, and earlier touching another annual low of $12.02. The e-tailer was hit by a trio of price-target cuts at Jefferies (to $23), HSBC (to $24), and Deutsche Bank (to $8.30).

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The CBOE Volatility Index (VIX) is down 0.3 point, or 1.5%, at 19.77.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.22, with puts more than doubling calls. At last check, SPY is up 0.9 point, or 0.4%, at $203.40.

 

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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