"Just like that, the Russia and Ukraine conflict waned, and this
sparked huge buying across the board in global equities,"
summarized Schaeffer's Senior Technical Strategist Ryan Detrick,
CMT. "Will this Russia/Ukraine moment be the 2014 version of
Cyprus? Remember, we had a total freak-out over banking issues in
Cyprus last year, and it led to outright panic for about two days,
before the market quickly moved higher. This is the trait of a bull
market -- it doesn't give you time to get into it. Everyone sits
around waiting for a pullback, but that pullback simply doesn't
happen. The past three weeks have exemplified that type of move."
While some of the major indexes tagged new highs today, the
Dow Jones Industrial Average (DJI)
more than erased yesterday's losses with its best single-session
rally of the year.
Trading Topic of the Week
Continue reading for more on today's market, including
-- Ways to Win with Aggressive Trades:
Don't invest in intrinsic value
. If you're expecting a drastic pop or drop in the stock, why not
juice your returns even further by capitalizing on the greater
leverage of at-the-money options?
Dow Jones Industrial Average (DJI - 16,395.88)
was in recovery mode today, surging out of the gate and continuing
to gain ground before settling with a gain of 227.9 points, or
1.4%. In a reversal of Monday's session, all 30 Dow stocks closed
higher today, led by American Express Company (
), which added 2.9%. Bringing up the rear were 3M Co (
) and Chevron Corporation (CVX), which each added 0.4%.
S&P 500 Index (SPX - 1,873.91)
tagged a new all-time intraday high of 1,876.23 before closing at
another new all-time peak, up 28.2 points, or 1.5%. The
Nasdaq Composite (COMP - 4,351.97)
enjoyed its biggest single-day gain in four months, up 74.7 points,
or 1.8%. On an intraday basis, the tech-rich index reached its
highest point since April 2000, at 4,357.21.
CBOE Volatility Index (VIX - 14.10)
slumped 1.9 points, or 11.9%, but managed to hold above the 14
A Trader's Take
"We saw new all-time highs today in the S&P 500 Index (SPX),
S&P 400 MidCap Index (MID), and Russell 2000 Index (RUT),"
Detrick said. "Small-caps were a champ today. In fact, the RUT
gained 2.7% for one of its best days in months. Two weeks ago, we
started noting how small-caps had (finally) started to take charge
and lead again, which was a clue that new highs were coming. To see
small-caps breaking out to new highs today is a very welcome sign,
and one that suggests the bulls are still firmly in control. You
could try to pick a top like so many traders do, or stick with the
trend -- which is higher."
5 Items on Our Radar Today
- With the domestic economic calendar bare, attention again
turned to Ukraine
, where immediate tensions with neighboring Russia appeared to
have lessened. Russian President Vladimir Putin ordered troops
back to their bases from the Ukrainian border -- but did defend
his country's right to invoke military action if needed.
Meanwhile, U.S. Secretary of State John Kerry arrived in Kiev,
maintaining the threat of sanctions against Russia and requesting
that the situation be "de-escalated."
- In his first speech since leaving the office of Federal
Reserve chair at the end of January,
Ben Bernanke expressed a relatively upbeat
on the global economy. Speaking at a banker's conference in Abu
Dhabi, Bernanke said the U.S. economy would likely expand by 3%
this year, and noted that "recoveries are picking up" in the G-7
- Rumors of a $60 million drone-maker acquisition sparked
Facebook Inc (
weekly options traders, who scooped up bullish bets.
- It's a gastronomic battle between Outback Steakhouse and
Olive Garden, as
Darden Restaurants, Inc. (DRI) and Bloomin' Brands Inc
come toe-to-toe in our
E-Commerce China Dangdang (ADR) (DANG)
rallied on sector strength, and inspired front-month call
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures faltered in Tuesday's trading, as traders became
less anxious about the situation in Ukraine. April-dated oil logged
a drop of $1.59, or 1.5%, by the close, to settle at $103.33 per
Gold also lost ground, amid reduced demand for perceived "safe
havens." Gold for April delivery closed the day down $12.40, or
0.9%, at $1,337.90 an ounce.
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