Stocks exploded higher today, as the Dow Jones Industrial
Average (DJI) surged nearly 200 points. "Sentiment seemingly pulled
a full 180 from yesterday, and it appears that many were caught
off-guard by today's rally," explained Equities Analyst Bryan Sapp.
"While we've been stuck in a trading range for weeks, everything
now appears ready to right itself. Hopefully, there will be some
resolution, so that premium buyers don't continue to get chopped up
in the market."
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
- See what's got Sapp exclaiming:
"Oh, what a difference a day can make!"
- Reading between the lines of the
housing starts report
- Columnist Adam Warner wants you to know how to gauge the
recent spike in market volatility
- Plus, Senior Technical Strategist Ryan Detrick believes
there is reason to be optimistic
about the current market.
Dow Jones Industrial Average (DJI - 13,115.54)
leapt markedly higher today, securing its first settlement atop
13,000 in over a week. In the last hour of trading, the Dow was up
roughly 210 points at its session peak of 13,131.36, but pared some
of its gains to close with a 194.1-point, or 1.5%, upswing. All 30
of the blue chips finished in the black, as Walt Disney (
) and Kraft Foods (
) paced the outperformers with wins of 2.5% and 2.4%,
S&P 500 Index (SPX - 1,390.78)
surged 21.2 points, or 1.6%, to finish well above the 1,375 level.
Nasdaq Composite (COMP - 3,042.82)
turned in the best performance of its fellow benchmarks, and soared
54.4 points, or 1.8%.
CBOE Market Volatility Index (VIX - 18.46)
dropped 5.6% to close down for a second straight session. The
market's fear gauge ended just below its session high of 18.66.
Housing starts unexpectedly fell
5.8% in March to a seasonally adjusted annual rate of 654,000,
reported the Commerce Department. This decline came as a surprise,
as economists were looking for a 0.7% increase. Conversely,
building permits rose 4.5% in March to an annualized 747,000 --
highest level since September 2008
, and defying expectations for a drop of 0.3%.
The International Monetary Fund (
upped its 2012 global growth forecast
to 3.5%. During this timeframe, the IMF expects the U.S. economy to
expand by 2.1%, and Europe to contract by 0.3%.
: "After a rough day on Monday, European indexes had a huge day
today: London's FTSE 100 added 1.8%, while both the French CAC 40
and the German DAX were up 2.7%. A major reason for these big moves
Spanish bond auction
that went much better than expected," stated Sapp. "Additionally,
after pulling the market down with it yesterday -- and after a
scary open this morning -- Apple (
) settled up nearly 5%."
Ryan Detrick visited The Traders Network on Monday to discuss
what the recent rise in bearish sentiment on the Street could mean
for contrarian investors.
to listen to the interview.
Turning to equities in focus...
And, in case you missed it
, Adam Warner answered his own questionnaire for traders interested
in volatility-based ETFs.
to read his responses.
For today's activity in commodities, options, and more, head
to page 2.
Oil futures rallied today as stocks surged. The commodity also
continued to receive support from Monday's news that the Seaway
crude pipeline will be reversed earlier than initially planned,
helping to ease an overabundance of supply. Crude for May delivery
added $1.27, or 1.2%, to land at $104.20 a barrel.
Gold futures reversed their two-day trek lower, catching a lift
from the positive momentum in the broader equities market.
June-dated gold ticked up $1.40, or 0.1%, to close at $1,651.10 an
Levels to Watch in Trading
- Dow Jones Industrial Average (DJI - 13,115.54) - support at
11,500; resistance at 14,000
- S&P 500 Index (SPX - 1,390.78) - support at 1,100;
resistance at 1,500
- Nasdaq Composite (COMP - 3,042.82) - support at 2,400;
resistance at 3,400
For today's notable annual highs and lows,
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