Dow Makes It Five Days In a Row With a New Record

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"Today was more of the same, a slow steady move higher and more new highs along the way," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, as the Dow Jones Industrial Average (DJI) climbed slightly, setting another intraday trading record. "I wish there was more to it than this, but there was virtually no big news and the bulls continue to move things higher."

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

  • Schaeffer's Senior Options Strategist Tony Venosa, CMT, answers a reader request , showing why 3D Systems Corporation ( DDD ) is a buy at $30.
  • Schaeffer's Senior Trading Analyst Bryan Sapp on how expiration week can move the markets; plus, the chart of the day on Fastenal Company ( FAST ).
  • How short-term option traders bet on a continued upswing in Facebook Inc ( FB ) through the end of the week.
plus...
  • The Dow makes it five days in a row with a new intraday record, a surprising fight over coffee, and online gaming company Zynga ( ZNGA ) was the target of short-term bullish option traders.

The Dow Jones Industrial Average (DJI) continued its climb up the charts, setting a new all-time intraday high for the fifth day in a row. The Dow finished at 14,447.29, gaining 50 points, or nearly 0.4%. The 30-member Dow saw 23 companies advance, led by The Boeing Company ( BA ), which climbed 2.1%. The seven decliners were led by industrial conglomerate General Electric (GE), which fell 0.6%.

The S&P 500 Index (SPX) climbed 5 points, or 0.3%, to close at 1,556.22, just shy of a new all-time closing peak. The SPX also set another intraday annual high, and is now trading at levels not seen since October 2007. After a slow start, the Nasdaq Composite (COMP) also gained nearly 9 points, or 0.3%, to finish at 3,252.87.

The CBOE Market Volatility Index (VIX) fell 1 point, or 8%, to close at 11.58.

A Trader's Take :

"Monday had been a rather bearish day, in fact, starting the year off with six straight days in the red for the S&P 500 Index (SPX) -- but the past two Mondays have been in the green," Detrick noted. "Today seemed like everyone was still trying to figure out what last week's strong jobs data means."

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

3 Things to Know About Today's Market :

  • The state of Illinois was charged Monday with securities fraud by the Securities and Exchange Commission, which said the state misled bond investors about pension fund obligations and how badly the pension was underfunded. (Chicago Tribune)
  • Activist investor Carl Icahn signed a confidentiality agreement with Dell Inc. (DELL) as part of his effort to keep the company from going private. Last week, Icahn's company upped its stake in the computer maker. (CBS)
  • And the battle in New York City over the size of sugary drinks took an interesting turn today, with a state judge halting the city's impending ban on oversized sodas and coffees. Sunday, Mayor Michael Bloomberg unloaded on Starbucks (SBUX), which had announced it would not change its drinks, pending a lawsuit filed by the beverage industry. (The Wall Street Journal/MarketWatch)

5 Stocks We Were Watching Today :

  1. Online game maker Zynga ( ZNGA ) was the target of short-term bulls looking to cash in by Friday's expiration date.
  2. Short-term traders were also optimistic about Las Vegas Sands Corp. (LVS), as the casino operator saw a big uptick in call trades that expire at the end of the week.
  3. A minor recovery by Halozyme Therapeutics (HALO) brought a barrage of optimistic call traders.
  4. Sporting goods retailer Dick's Sporting Goods (DKS) turned in a disappointing earnings call today, and bearish put traders immediately swooped in .
  5. One investor executed a rare three-strike spread on Genworth Financial (GNW), betting on long-term upside in the shares.

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 :

Oil futures finished with a minor gain, bouncing back after dropping $1 and hitting an intraday low of $90.89 amid concerns about China. April-dated crude closed at $92.06 a barrel, adding 11 cents, or 0.1%.

Gold had its their best finish since Feb. 28, with April futures ending up $1.10, or 0.1%, to settle at $1,578 an ounce.

SCHAEFFER'S MARKET POSTURE

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 critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.



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.

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This article appears in: Investing , Options

Referenced Stocks: BA , DDD , FAST , FB , ZNGA

Schaeffer's Investment Research

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