Dow Jones Industrial Average Drops 132; VIX Skyrockets

'Fear Gauge' Skyrockets; Plus, the Famous Short Circling Facebook

Jun 13, 2016 at 4:29 PM
facebook twitter linkedin


The Dow Jones Industrial Average (DJIA) extended Friday's slide, as anxiety builds ahead of this week's Fed and Bank of Japan meetings, and as the latest polls show the United Kingdom is leaning toward a "Brexit" on June 23. Against this backdrop, the CBOE Volatility Index (VIX) -- otherwise known as the market's "fear gauge" -- hit a three-month high. Meanwhile, Dow stock Microsoft Corporation (NASDAQ:MSFT) also weighed on the index, following its major M&A announcement.

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

The Dow Jones Industrial Average (DJIA - 17,732.48) finished down 132.9 points, or 0.7%. MSFT gave up 2.6%, the largest drop among the 25 Dow losers, while Exxon Mobil Corporation (NYSE:XOM) led the five winners with a 0.7% gain. 

The S&P 500 Index (SPX - 2,079.06) ended down 17 points, or 0.8%. The Nasdaq Composite (COMP – 4,848.44) lost 46.1 points, or 0.9%.

The CBOE Volatility Index (VIX – 20.97) gained 23.1%, or 3.9 points, to finish at a three-month high. The VIX has surged 43% in the past two sessions.

indexes closing summary june 13
nyse and nasdaq stats june 13

5 Items on Our Radar Today: 

  1. The Financial Industry Regulatory Authority (FINRA) has appointed Robert Cook to replace retiring president and CEO Richard Ketchum. (Reuters)
  2. Moody's said it is reviewing MSFT's AAA credit rating, following the company's LinkedIn Corp (NYSE:LNKD) purchase. (Yahoo! Finance)
  3. It looks like America has a new favorite Mexican restaurant.
  4. Why Twitter Inc (NYSE:TWTR) enjoyed its best day in a while.
  5. This cybersecurity firm was popping off in the pits after today's tech takeovers.

unusual options activity june 13
Data courtesy of
Trade-Alert

Commodities:

July-dated oil dropped 19 cents, or 0.4%, to end the day at $48.88 per barrel. Oil prices were weighed down by "Brexit" concerns and anticipation of this week's Fed meeting.

August-dated gold was up $11, or 0.9%, to $1,286.90 per ounce, a four-week high. "Brexit" worries made investing in the precious metal more appealing to "safety" seekers. 

Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View
 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners