"The jobs number came in much worse than expected, and it seemed
like everyone felt the market could do nothing but go straight
down," reported Schaeffer's Senior Equity Analyst Joe Bell, CMT.
"Well, after a brief sell-off before the market opened, the bulls
bought the dip and yesterday's momentum continued in a big way to
the upside." The
Dow Jones Industrial Average (DJI)
continued to fight its way into the green, closing with another
triple-digit gain and finishing in positive territory for the week.
Continue reading for more on today's market, including
Trading Topic of the Week
- A look at the
week's biggest market news
, in seven short bullets.
Where have all the bulls gone
? Schaeffer's contributor Adam Warner has one theory.
the worst yet to come
for beleaguered J.C. Penney Company, Inc. (
) shares? Some put buyers seem to think so.
... the monthly jobs report disappoints, a Federal Reserve
official takes to the airwaves, and one Intel (
) bull placed a half-a-million-dollar bet.
-- Reasons to Dodge Directional Risk:
Reduce your reliance on stop-losses
. With straddles, your dual directional exposure means you won't
suffer major initial losses due to market volatility or adverse
Dow Jones Industrial Average (DJI - 15,794.08)
spent nearly all of today's session marching higher, ending with a
gain of 165.6 points, or 1.1%, a chip-shot away from its intraday
peak. On a weekly basis, the blue-chip index managed a 0.6% gain.
All but one of the Dow's members advanced today, with The Boeing
) 3.6% gain leading the charge. The lone laggard was The Coca-Cola
), down 0.2%.
S&P 500 Index (SPX - 1,797.02)
finished just shy of the round-number 1,800 mark, surging 23.6
points, or 1.3%, on the day. The
Nasdaq Composite (COMP - 4,125.86)
also advanced, adding 68.7 points, or 1.7%. The SPX rose 0.8%
week-over-week, while the COMP moved up 0.5%.
CBOE Volatility Index (VIX - 15.29)
gave back 1.9 points, or 11.3%, and ended the week with a 16.9%
A Trader's Take
"The strength in the dollar relative to the yen is getting a lot
of attention recently, and once again corresponded with today's
strength after the jobs report," noted Bell. "The cyclical sectors
took a leadership role today, with technology and industrials
sporting large gains."
5 Items on Our Radar Today
- The U.S. labor force grew by 113,000 jobs last month,
falling notably short
of economists' estimates. The unemployment rate dropped to a
five-year low of 6.6%, and is well off its post-recession high of
10%, which was hit in October 2009.
- Dallas Fed President Richard Fisher
appeared on CNBC
to quell the notion that the jobs number is the only data point
being monitored as the central bank makes further tapering
decisions. "The real question is momentum in the economy," he
noted, "and it has been picking up."
- One large-scale speculator scooped up a massive block of
Intel Corporation (
calls, wagering on a return to historical highs.
Yelp Inc (
options players are looking for a move up to the never-explored
Option Idea of the Week
Canadian Solar Inc. (CSIQ)
shares could have more gas in the tank, even after the stellar
year they've had.
For a look at today's options movers and commodities
activity, head to page 2.
March-dated oil futures moved higher, even edging above the
$100-per-barrel level in intraday trading before settling on a gain
of $2.04, or 2.1%, at $99.88 per barrel. The buying was driven by
healthy demand expectations and continued concerns over supplies.
On a weekly basis, black gold rose 2.5%.
Gold futures rose for the third straight session, following a
worse-than-expected monthly jobs report. By the close, gold for
April delivery had gained $5.70, or 0.5%, to finish at $1,262.90 an