5MRD

Energy Implosion Drills Dow Jones Industrial Average

The Worst Way to Hedge Against a Market Drop

Dec 7, 2015 at 12:06 PM
facebook X logo linkedin


A sharp sell-off in crude oil is weighing heavily on the Dow Jones Industrial Average (DJIA), which is down triple digits as energy giants Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) tank. Specifically, January-dated futures were last seen down 4.5% at $38.15 per barrel -- putting them on track for a year-to-date closing low -- while Brent crude hit a nearly seven-year low. Meanwhile, Wall Street is awaiting word from St. Louis Fed President James Bullard, whose speech on U.S. economic and monetary policy is the last scheduled address by a central bank official prior to next week's key policy meeting.

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

 


151207mmc

Among the stocks with notable option activity is firearm firm Smith & Wesson Holding Corp (NASDAQ:SWHC), as the contracts are trading at 19 times the expected intraday rate. Currently, the stock is 7.3% higher at $20.37 -- and fresh off an eight-year high of $20.62 -- amid news that Americans are purchasing more guns in the wake of last week's San Bernardino shooting, and ahead of tomorrow night's earnings report. Among the most active is the December 20 call, where buy-to-open activity is detected.

Among the biggest losers on the Nasdaq is drugmaker bluebird bio Inc (NASDAQ:BLUE), after lackluster trial data sparked a round of negative analyst attention. At last check, BLUE has shed 34.3% to trade at $54.98.

151207blue

The biggest gainer on the Nasdaq is Keurig Green Mountain Inc (NASDAQ:GMCR), up over 74% at $89.47. Sparking the bullish gap is news the coffee company is being taken private for nearly $14 billion.

The CBOE Volatility Index (VIX) is up 1.7 points, or 11.8%, at 16.55.

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 0.84, with calls outstripping puts. At last check, SPY is off 0.9% at $207.71.

 

The $25K Day Trading Barrier is Gone

The long-standing Pattern Day Trader (PDT) rule that required many traders to maintain a $25,000 account balance is no longer standing in the way.

That means more traders can actively pursue short-term opportunities without the barrier that kept so many on the sidelines.

Now it's all about having the right strategy.

Dynamite Day Trading Signals helps you hit the ground running with up 2 options trade alerts per week, built to capture fast-moving opportunities.  

👉 Sign up now to receive the next trade

MR content page
 
 
 
 

Follow us on X, Follow us on Twitter