"After the drop we saw the past two days, we had a very nice
bounce," said Schaeffer's Senior Technical Strategist Ryan Detrick,
CMT, on a day that saw the
Dow Jones Industrial Average (DJI)
fight back after a two-day slide to actually pull out a win for the
week. It was a 120-point comeback for the Dow that pulled the index
back above 14,000 for the second time this week. "It was nice to
see small-caps take the lead again after getting crushed the past
two days," Detrick added.
Continue reading for more on today's market, including
- Our Senior Trading Analyst Bryan Sapp on what
moved the markets
upwards; plus, the latest outlook for Facebook (
- Schaeffer's Option Idea of the Week: KB Home (
), which has charged up the charts and could be a
for a longer-term call play.
- How option bulls
on Las Vegas Sands Corp. (
- The markets get up off the mat after a two-day pounding,
disappointing economic forecasts out of Europe, and how bulls are
counting on eBay (
) continuing its technical recovery.
Dow Jones Industrial Average
bounced off the mat after a heavy two-day drubbing to gain 120
points, or 0.9%, to close at 14,000.57. Of the 30 companies on the
Dow, 25 advanced, led by computer maker Hewlett-Packard Company (
), which climbed 12.3% after a positive earnings surprise. The five
decliners were led by UnitedHealth Group (UNH), which dropped 1.4%.
Today's charge helped the Dow finish the week up 0.1% and above
14,000 for the second time this week.
S&P 500 Index (SPX)
also picked itself up, gaining more than 13 points, or 0.9%, to
close at 1,515.60 -- marking the 13th consecutive session the SPX
has finished above the round-number barrier of 1,500. The SPX
finished down 0.3% on the week. The
Nasdaq Composite (COMP)
rose 30 points (1%) to finish at 3,161.82. For the week, the COMP
was down nearly 1%.
CBOE Volatility Index (VIX)
fell 1.1 points, or nearly 7%, to close at 14.17. The VIX finished
the week up 13.7%.
A Trader's Take
"Now the one issue I have with today's bounce is volume was very
light," Detrick said. "When you consider how heavy the volume was
on the sell-off, today's light volume is very concerning under the
surface. It was a very strange day as bonds also were higher.
Usually when we have a big up day in equities, bonds tend to drop
... but not today."
3 Things to Know About Today's Market
- European Commission officials released
a gloomy forecast
for 2013 that called for the 17-nation region's economy to shrink
for the second straight year.
- Investors are not sinking
as much money
into stocks as they did last year -- for fear of a tightening of
the money supply -- but Federal Reserve officials are signaling
that its monetary stimulus programs will not be ending soon.
(Los Angeles Times)
- And Darden Restaurants (DRI), the folks who bring you Red
Lobster and Olive Garden,
cut its outlook
for the year, saying the bad economy and higher payroll taxes are
slowing traffic at their restaurants.
5 Stocks We Were Watching Today
- Option players
on a short-term rebound by online retailer/auction site eBay Inc
- Some bearish investors in Texas Instruments (TXN)
their puts as the computer chip maker increased its dividend and
expanded its stock-buyback program.
- Vertex Pharmaceuticals (VRTX) also saw
, with put buyers going against the grain both in terms of
sentiment and technicals.
- An earnings-related stock rally for HomeAway, Inc. (AWAY)
drew the attention
of bulls today, with put trading above 13 times normal
- A rebound from this week's huge fall by VeriFone Systems
bearish put buyers, who flocked to the electronic payments
For a look at today's options movers and commodities
activity, head to page 2.
Most commodities were higher Friday, including crude futures,
with oil for April delivery up 29 cents, or 0.3%, closing at $93.13
per barrel. On a weekly basis, however, crude shed 2.8%.
But gold declined, with the precious metal hitting a seven-month
low amid uncertainty over the Fed's future policy plans. The April
contract dropped $5.80, or 0.4%, to finish at $1,572.80 per ounce.
For the week, gold gave up 2.3%.
At the end of every market day, the staff at Schaeffer's
Investment Research reviews the trading day in detail, covering
major events and key market developments. Don't miss this
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