Dow Jones Industrial Average, S&P, Nasdaq Nab Streak Not Seen Since '92

The Massive Risk to Being Short March VIX Futures

Feb 15, 2017 at 4:30 PM
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The Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq Composite (COMP) all hit record closing highs for the fifth day in a row -- a signal not sounded since the early 1990s -- after President Donald Trump weighed in on his highly anticipated tax plan. A round of SEC filings from hedge funds also helped lift several big-cap stocks -- including Apple Inc. (NASDAQ:AAPL) -- while Philadelphia Fed President Patrick Harker and Boston Fed President Eric Rosengren reiterated the relatively hawkish tone taken by their colleagues this week. Additionally, traders digested Fed Chair Janet Yellen's final day on Capitol Hill, which followed this morning's economic data.

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

  • The massive risk to being short March VIX futures, courtesy of founder and CEO Bernie Schaeffer and Senior V.P. of Research Todd Salamone.
  • How traders are using options to hedge the record-setting rally in tech shares.
  • Why now may be the perfect time to bet bullishly on Valeant Pharmaceuticals Intl Inc (NYSE:VRX).
  • Plus, the Buffett effect, First Solar's bullish signal, and two reasons Groupon soared.

The Dow Jones Industrial Average (DJIA 20,611.86) notched a new all-time intraday high of 20,620.45, before settling up 107.5 points, or 0.5%. Of the 30 Dow stocks, 24 ended higher, with Procter & Gamble Co (NYSE:PG) leading the way with its 3.7% advance. Merck & Co., Inc. (NYSE:MRK) paced the six decliners with its 0.8% loss.

The S&P 500 Index (SPX - 2,349.25) added 11.7 points, or 0.5%, and also notched a new intraday high of 2,351.30. Meanwhile, the Nasdaq Composite (COMP – 5,819.44) gained 36.9 points, or 0.6%, after hitting an all-time intraday high of 5,821.95.

The CBOE Volatility Index (VIX - 11.97) added 1.2 points, or 11.5%.

Indexes closing summary February 15
NYSE and NASDAQ stats February 15

5 Items on Our Radar Today

  1. Verizon Communications Inc. (NYSE:VZ) is reportedly nearing a renegotiated deal with Yahoo! Inc. (NASDAQ:YHOO) that would knock about $250 million off the previous $4.8 billion deal for YHOO's core internet business. The talks began when several serious security breaches were revealed by YHOO. (Bloomberg)
  2. Retail giant Wal-Mart Stores Inc (NYSE:WMT) has purchased outdoor gear retailer Moosejaw in a deal worth $51 million. WMT is reportedly looking to expand its reach into the increasingly competitive online apparel sales sector, which is currently dominated by Amazon.com, Inc. (NASDAQ:AMZN) and Macy's Inc (NYSE:M). (Fortune)
  3. How Warren Buffett sent this radio stock to decade-highs, but had Deere & Company (NYSE:DE) tumbling ahead of earnings.
  4. First Solar, Inc. (NASDAQ:FSLR) just flashed a historically bullish technical signal.
  5. The two things that sent Groupon Inc (NASDAQ:GRPN) up nearly 23%.

Quarterly Earnings February 15
Unusual Options Activity February 15

Data courtesy of Trade-Alert

Commodities

March-dated crude futures fell 9 cents, or 0.2%, to settle at $53.11 per barrel, as data showed U.S. crude supplies rose for a sixth consecutive week to hit a record peak. Plus, gasoline inventories unexpectedly increased, also topping out at an all-time high.

April-dated gold futures tacked on $7.70, or 0.6%, to close at $1,233.10 an ounce -- snapping its four-session losing streak -- after the dollar gave up early Fed-induced gains.

Get your daily dose of Dow futures, stock news, and more with Schaeffer's Opening View.

 

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