Dow Starts Fast, Finishes Stronger

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"Once again, rumors and news out of Cyprus drove worldwide markets," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, as the Dow Jones Industrial Average (DJI) started strong but had to rally even stronger to finish with a win for the day. "In the end, Cyprus' Parliament rejected the proposed bailout. This will continue to change and the news flow will be heavy nearly every day going forward. But what is important to know is that a country the size of San Diego is now controlling global equity markets."

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

  • Schaeffer's Senior Options Strategist Tony Venosa, CMT, listing his eight reasons why to short Marvell Technology Group ( MRVL ).
  • Our Senior Trading Analyst Bryan Sapp on "the lingering fear" surrounding the markets today; plus, a deep dive into Goldcorp Inc. ( GG ).
  • How option buyers are hoping for a strong week from Apple ( AAPL ).
plus...
  • The markets start fast but barely pulls out a win, the possible return of a popular brand, and how bullish option traders surrounded Microsoft ( MSFT ) today.

The Dow Jones Industrial Average (DJI) started out of the gate strong, boosted by positive housing numbers, but the fears over the Cyprus crisis pulled the market down as the day progressed. Yet the Dow still pulled out a win with a last-minute rally, closing at 14,455.82, up nearly 4 points, or less than 0.1%. The 30-member Dow saw 16 of its members advance, led by Coca-Cola ( KO ), which climbed 1.5%. Caterpillar (CAT) fell 1.2% to lead the 14 decliners.

The S&P 500 Index (SPX) fell back nearly 4 points, or 0.2%, to close at 1,548.34. The Nasdaq Composite (COMP) finished at 3,229.10, down 8 points, or 0.3%.

The CBOE Market Volatility Index (VIX) gained 1 point, or 7.7%, to close at 14.39.

A Trader's Take :

"Stepping away from Cyprus for a second, February housing starts came in rather strong," Detrick noted. "Housing has been the one pillar of strength in the U.S. economic recovery, and today's data did little to change that. Say what you want, but a continued recovery in housing will have an exponential multiple on overall consumer confidence."

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

3 Things to Know About Today's Market :

  • Cypriot legislators rejected the proposed bailout package from the European Union because of the controversial tax on bank deposits designed to help pay back the aid program. Cyprus leaders now head back to the bargaining table with the EU and International Monetary Fund. (The New York Times)
  • Both new home starts and building permits rose in February according to the U.S. Commerce Department, beating economists' expectations. (MarketWatch)
  • And finally ... snackers, rejoice! The bankruptcy judge overseeing the dismantling of Hostess gave his blessing to the sale of the venerable Twinkies brand, as well as for Wonder Bread and other well-known Hostess brands. (CNNMoney)

5 Stocks We Were Watching Today :

  1. Optimism abounded for Microsoft ( MSFT ), which saw call traffic explode, especially in the May series.
  2. Questcor Pharmaceuticals (QCOR) also was the target of bullish option investors looking for a continued rise into next month.
  3. The shakeup at ARM Holdings (ARMH) didn't rattle optimistic option players, who looked for a decent jump on the stock into April.
  4. AMD Micro Devices (AMD) rose on the charts, catching the eye of bullish option traders.
  5. A positive analyst note spurred bullish investors into action on Best Buy Co. (BBY).

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 had its three-day win streak snapped, with worries over the Cyprus bailout situation sparking concern over energy demand across the region. April crude futures finished at $92.16 per barrel, down $1.58, or 1.7%.

However, gold rose as investors looked for a safe haven because of the Cyprus issues. April-dated gold rose $6.70, or 0.4%, to close at $1,611.30 an ounce. It was the highest close for a front-month contract since February 26, and the precious metal's fourth straight daily gain.

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: AAPL , GG , KO , MRVL , MSFT

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