Dow Extends Winning Streak, Briefly Tops 16,000

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"Janet Yellen did a perfect Ben Bernanke impression in her Congressional testimony today," observed Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "The new Federal Reserve chairwoman toed the line perfectly by discussing an improving economy, but saying we shouldn't expect a rate hike anytime soon. The bears were out in full force just seven days ago. Seriously, a week ago many of the big-name bears were all over TV warning of the impending emerging markets sell-off that would grip the globe and bring down asset prices along with it. In the end, it looks like yet another 6% dip that scared everyone to death, before a nice move higher." After moving steadily higher throughout the trading day, the Dow Jones Industrial Average (DJI) closed up 193 points and briefly topped the 16,000 level in intraday trading.

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

  • Is Facebook Inc ( FB ) headed for another record high this week ? These options speculators sure think so.
  • The rise and fall of the "Dumb Starbucks" parody coffee shop ... and how the real Starbucks Corporation ( SBUX ) is faring these days.
  • In case you missed it... which is the superior business-ratings website ? Angie's List Inc ( ANGI ) and Yelp Inc ( YELP ) duke it out in our latest Brand Face-Off.
  • Plus ... Federal Reserve Chairwoman Janet Yellen speaks, bullish bettors descend on Nokia Corporation (ADR) ( NOK ), and ConAgra Foods, Inc. (CAG) continues to struggle.
Trading Topic of the Week -- Learning to Trade Like the Pros: Paper trade as a proving ground . Before you put real capital at risk, use a virtual trading platform to experiment with new trading ideas in a risk-free arena.

The Dow Jones Industrial Average (DJI - 15,994.77) marched steadily higher out of the gate this morning, ultimately rising to an intraday peak of 16,027.19 shortly before the close. The blue-chip index failed to maintain its footing above this millennium mark, but did end with a gain of 193 points, or 1.2%. All but one of the Dow's 30 components moved higher today; The Boeing Company (BA) paced the advancers, rising 2.4%. Cisco Systems, Inc. (CSCO) was the lone laggard, dropping 0.5% ahead of tomorrow's earnings report.

The S&P 500 Index (SPX - 1,819.75) added 19.9 points, or 1.1%, to finish north of the 1,800 mark for the first time since Jan. 23. The Nasdaq Composite (COMP - 4,191.04) rose 42.9 points, or 1%, and edged into positive territory for the year.

The CBOE Volatility Index (VIX - 14.51) closed below 15 for the first time since Jan. 23, giving back 0.8 point, or 4.9%.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"The S&P 500 Index was able to clear its 50-day moving average, so that is another step in the right direction," continued Detrick. "In the end, though, the best news of all is that the doomsday chanters might just have to wait until the next impending crisis, as the bulls are once again taking charge here."

5 Items on Our Radar Today :

  1. All eyes were on Janet Yellen today, as the new Federal Reserve chair testified before the House Financial Services Committee . Yellen expressed a desire for "continuity" with regard to the central bank's current monetary policy. She also expressed hope for a continued economic recovery, but noted recovery in the jobs sector is "far from complete." (The New York Times)
  2. Earnings on Deck : Taking the sentiment pulse of Applied Materials, Inc. (AMAT), NVIDIA Corporation (NVDA), and Zillow Inc (Z) ahead of tomorrow's earnings reports.
  3. Inspired by recent fundamental developments, Nokia Corporation (ADR) ( NOK ) speculators wagered on continued upside.
  4. Zynga Inc (ZNGA) option bulls are targeting a near-term breakout above the $5 level.
  5. Bearish traders have flocked to the ConAgra Foods, Inc. (CAG) options pits in the wake of lackluster price action and disappointing news.

EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

A five-day winning streak in crude oil drew to a close today, as futures headed lower ahead of tomorrow's inventories update. March-dated crude declined 12 cents, or 0.1%, to rest at $99.94 per barrel.

Gold futures, on the other hand, kept their winning streak alive, closing in positive territory for the fifth consecutive session. Gold for April delivery added $15.10, or 1.25%, to end the day at $1,289.80 an ounce, the highest settlement for a most active contract since mid-November.

SCHAEFFER'S MARKET POSTURE



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: FB , SBUX , ANGI , YELP , NOK

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