"What a wild day," observed Schaeffer's Senior Technical
Strategist Ryan Detrick, CMT. "It was calm until the Fed minutes
came out, and then it was a wild ride. In the end, the bears took
control, and the
Dow Jones Industrial Average (DJI)
finished lower for a sixth straight day. You can dissect the Fed
minutes all you want, but the reality is that August and September
are historically troublesome months, and so far, that trend is
playing out." By the time the dust settled, the Dow had suffered a
Continue reading for more on today's market, including
- Given the market's
short-lived Fed-induced bounce
, Schaeffer's Senior Trading Analyst Bryan Sapp opines that the
bears are "still in control" until the S&P 500 retakes
- In his latest
Chart of the Day
offering, our Senior Options Strategist Tony Venosa, CMT, makes a
bearish case for Facebook (
- Today's edition of
takes a closer look at three low-priced stocks with upside
potential, from a contrarian standpoint.
The Fed said it's on track to taper current stimulus measures
by year's end, existing home sales hit a multi-year high, and
) saw a flurry of bearish options activity.
Dow Jones Industrial Average (DJI - 14,897.55)
touched an intraday low of 14,880.84, and then rose to a session
high of 15,019.70 in the span of less than an hour this afternoon.
By the close, however, the blue-chip barometer was back in negative
territory to finish 105.4 points, or 0.7%, lower. Wal-Mart (
) led the Dow's three advancers with a gain of 0.4%, while Alcoa's
) 2% drop paced the 27 decliners.
S&P 500 Index (SPX - 1,642.80)
mimicked the path of its blue-chip brethren today, and ended with a
loss of 9.6 points, or 0.6%. Meanwhile, the
Nasdaq Composite (COMP - 3,599.79)
fell 13.8 points, or 0.4%.
CBOE Market Volatility Index (VIX - 15.94)
experienced some rollercoaster movement of its own, but closed with
an advance of 1 point, or 6.9%. The "fear gauge" is on pace to
finish a second consecutive week atop its 20-week moving
A Trader's Take
"What is interesting is that, under the surface, there are many
leading stocks holding up well," commented Detrick. "Names like
), Green Mountain Coffee Roasters (GMCR), and 3D Systems (DDD) all
held up in the face of the selling. Still, it is tough out there,
and surging yields are scaring both bond and stock bulls
3 Things to Know About Today's Market
- It looks like the Fed plans to scale back its bond-buying
program by year's end, according to the latest Federal Open
Market Committee (FOMC)
, which were released earlier this afternoon. Although officials
did not offer any hints as to exactly which month the tapering
will begin, they ceremoniously agreed with Chairman Ben
Bernanke's belief that economic conditions will continue to
improve throughout the remainder of the year.
- The National Association of Realtors said that
existing home sales
rose by 6.5% to an annual rate of 5.39 million in July. The
latest figure easily surpassed the consensus view, and marked the
fastest sales pace in more than three years. Meanwhile, the
average price for a previously owned home jumped by 13.7% on a
year-over-year basis to $213,500.
- Target (TGT) reported a
of 95 cents per share, down from $1.06 per share in the year-ago
period. Excluding items, however, earnings came in at $1.19 per
share, while revenue rose 2% to $17.12 billion. Analysts, on
average, were expecting a per-share profit of 96 cents on sales
of $17.28 billion.
(The Washington Post)
5 Stocks We Were Watching Today
received a price-target hike amid buzz that its new Vevo Apple TV
app could be released this week.
- Bullish traders converged on
First Solar (FSLR)
to wager on extended gains over the next few weeks.
lured back-month put buyers to the options pits as the stock
flirted with its January lows.
- Options volume spiked on
as both call and put players placed near-term bets.
- One neutral speculator constructed a collar on
American International Group (AIG)
by utilizing October-dated options.
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil futures fell for a third consecutive day, and dropped
substantially after the release of the FOMC minutes. By the closing
bell, October-dated oil -- now the front-month contract -- lost
$1.26, or 1.2%, to end at $103.85 per barrel.
Similarly, gold futures finished in the red, and declined even
further in electronic trading due to the latest Fed news. The
December-dated contract shaved off $2.50, or 0.2%, to end at
$1,370.10 an ounce.
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