Dow Jones Industrial Average Makes It 3 Straight As Oil Recovers

2015's Best Volatility Trade

Dec 23, 2015 at 4:28 PM
facebook twitter linkedin

In the last full session before Christmas, the Dow Jones Industrial Average (DJIA) posted a third straight win. Thanks to rising oil prices, which led to big days for energy giants Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM), the blue-chip barometer spent the day enjoying a triple-digit lead -- and the S&P 500 Index (SPX) climbed higher on the year, extending its string of big daily moves. Adding to the risk-on attitude was relatively well-received economic data. The Dow will look to make it a clean sweep of wins for the holiday week during tomorrow's shortened session, when the closing bell sounds at 1 p.m. ET. 

Continue reading for more on today's market, including:

The Dow Jones Industrial Average (DJIA - 17,602.61) had a strong session, cruising to a 185.3-point, or 1.1%, win -- its ninth consecutive triple-digit move. All but two of the Dow's 30 components closed higher, led by CVX's 3.9% surge. NKE's 2.4% drop had it at the bottom of the list, with Walt Disney Co (NYSE:DIS) the other laggard, down 1.1%. 

The S&P 500 Index (SPX - 2,064.29) shot back into positive territory for 2015 by adding 25.3 points, or 1.2%. The Nasdaq Composite (COMP - 5,045.93) picked up 44.8 points, or 0.9%. 

The CBOE Volatility Index (VIX - 15.57) dropped 1 point, or 6.2%, to end below its 200-day moving average for the first time since Dec. 7. 



5 Items on Our Radar Today:

  1. New home sales for November came in below economists' expectations. Sales increased to 490,000 units, while economists expected slightly over 500,000. Yesterday, it was reported that existing home sales fell to a 19-month low last month. (Reuters

  2. Meanwhile, consumer spending bounced back, with personal incomes rising 0.3% in November. (The Washington Post)

  3. The analysts that think Apple Inc. (NASDAQ:AAPL) could encounter some "speed bumps."

  4. Why investors initially cheered Nike Inc's (NYSE:NKE) earnings report

  5. Things are only getting worse for Chipotle Mexican Grill, Inc. (NYSE:CMG)



Data courtesy of Trade-Alert


Oil futures shot higher today, thanks to a surprise decline in domestic oil inventories. The February contract added $1.36, or 3.8%, to end at $37.50 per barrel.  

Gold moved lower once again, as the dollar picked up strength. Gold for February delivery gave back $5.90, or 0.6%, to settle at $1,068.20 per ounce. 


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners