"In the end, a nice week ended on a strong note," opined
Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "The
two-week losing streak is a thing of the past, as the
S&P 500 Index (SPX)
gained more than 2% on the week. In fact, the SPX and the
Dow Jones Industrial Average (DJI)
both closed at new all-time highs. Then, under the surface,
small-caps had a huge day, and the Russell 2000 Index (RUT)
finished at a record peak, as well. All in all, with the Fed out of
the way, seasonality could take over, and more strength to end this
very bullish year could be in the cards."
Continue reading for more on today's market, including
Trading Topic of the Week -- Trading Low-Priced Options:
DO trade stocks with a favorable sentiment backdrop
. At Schaeffer's, we use sentiment analysis to determine whether a
stock's current trend is likely to continue. To maximize returns,
we focus our efforts on outperforming stocks surrounded by
skepticism, and lagging equities that continue to attract bullish
Dow Jones Industrial Average (DJI - 16,221.14)
trekked higher right out of the gate, and touched an all-time
intraday peak of 16,287.84 during the afternoon hours of trading.
By the end of the session, the Dow was up 42.1 points, or 0.3% --
notching yet another record closing high. For the week, the index
climbed 3%. The blue-chip barometer's 18 advancers were led by
Caterpillar Inc.'s (
) gain of 1.6%, while Pfizer Inc. (
) paced the 12 laggards with a drop of 1.5%.
S&P 500 Index (SPX - 1,818.31)
also spent the day in positive territory, tagging a record intraday
peak of 1,823.75 around 2:30 p.m. ET. By the time the dust settled,
the index was 8.7 points, or 0.5%, higher -- marking an all-time
closing high. Meanwhile, the
Nasdaq Composite (COMP - 4,104.74)
reached a 13-year intraday peak of 4,111.93, and advanced 46.6
points, or 1.2%, on the day. On a weekly basis, the SPX and COMP
added 2.4% and 2.6%, respectively.
CBOE Volatility Index (VIX - 13.79)
stayed south of breakeven for the entire day, and closed 0.4 point,
or 2.5%, lower. Week-over-week, the "fear gauge" shed 12.5%.
A Trader's Take
"We had another day of upbeat economic data," Detrick noted.
"This time it was the third-quarter gross domestic product (GDP)
report. Remember when strong data was viewed bearishly? Now that
the Fed has officially decided to start tapering, maybe we can get
to a more normal world, where good data is actually
. We've been saying all year here at Schaeffer's that the economy
is on stronger footing than most give it credit for, and the market
looked great. Now the economic data is starting to justify that
5 Items on Our Radar Today
- The Commerce Department said
gross domestic product (GDP)
increased at an annual rate of 4.1% in the third quarter -- up
from an initial estimate of 3.6%, and marking the fastest pace of
growth in two years. The latest figure was largely driven by a 2%
rise in consumer spending, versus a preliminary reading of 1.4%.
- BlackBerry Ltd (
) reported a
of $4.4 billion, or $8.37 per share, versus a profit of $9
million, or 2 cents per share, in the year-ago period. Excluding
items, the loss arrived at 67 cents per share. Meanwhile, revenue
declined by over 56% to $1.2 billion. Analysts, on average, were
expecting a per-share loss of 44 cents on sales of $1.6 billion.
However, the shares soared today on news of a five-year
partnership with Foxconn Technology Co Ltd.
Nike Inc (NKE)
received a vote of confidence from D.A. Davidson, following last
night's quarterly earnings report.
- Longer-term bulls bet on
Ford Motor Company (F)
to retake a key level, despite the firm's reduced 2014
Yahoo! Inc.'s (
new multi-year high didn't deter put buyers from targeting the
Internet stock in the options pits.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures drifted higher yet again, with February oil -- now
the most active contract -- adding 28 cents, or 0.3%, to end at
$99.32 per barrel. For the week, crude gained 2.8%.
Meanwhile, gold futures managed to regain some of yesterday's
losses. February-dated gold advanced $10.10, or 0.9%, to finish at
$1,203.70 an ounce. On a weekly basis, however, the precious metal