Markets Approach New Records After Strong Housing Data

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"Turnaround Tuesday was at it again," said Schaeffer's Senior Technical Strategist, Ryan Detrick, CMT, on a winning day for all the indexes, including the Dow Jones Industrial Average (DJI) , which surged on strong home price data. "After some selling yesterday, the bulls were back in charge today. The Cyprus news calmed down a bit and we were able to focus on some strong economic data. The economy isn't perfect, but we've been greeted with a good deal of strong data the past month or so."

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

plus...
  • The markets pull out a big win, positive news for homeowners, and how bears looked to cash in on the troubles at Ford Motor Company ( F ).

The Dow Jones Industrial Average (DJI) turned in a winning day on positive economic news, including a big jump in home prices. The Dow gained nearly 112 points, or 0.8%, to finish at 14,559.65 and move back above its 10-day moving average. The 30-member Dow saw 21 of its members advance, led by Intel ( INTC ), which climbed 2.9%. Bank of America (BAC) led the eight decliners for the second straight day, falling nearly 1.0%. Alcoa (AA) was unchanged.

The S&P 500 Index (SPX) also had a good day, picking up 12 points, or 0.8%, to close at 1,563.77 -- again narrowly missing setting a new all-time peak. The Nasdaq Composite (COMP) finished at 3,252.48, up 17 points, or 0.5%.

The CBOE Market Volatility Index (VIX) dropped 1 point, or 7.1%, to close at 12.77, dipping back below its 10-day moving average.

A Trader's Take :

"Congratulations to the Dow," Detrick said. "After today's move higher, it is now higher 11 straight Tuesdays. The previous record was 10 back in 1988 and 2004."

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

3 Things to Know About Today's Market :

  • Homeowners were given a dose of good news when the Standard & Poor's/Case-Shiller home price index had its largest year-over-year jump since 2006, with a lack of available properties in the 20 represented cities helping push prices higher. (ABC News)
  • Boeing (BA) completed its first test flight of the troubled 787 Dreamliner in an effort to allow the planes to resume flying after batteries overheated and caused fires on two flights. (CNNMoney)
  • The so-called sequester, those automatic federal spending cuts Washington leaders were unable to avoid, dragged consumer confidence well below expectations in March. (MarketWatch)

5 Stocks We Were Watching Today :

  1. Ford Motor's ( F ) recent PR snafu and stock slide led bears to look for further declines over the coming weeks.
  2. Bullish traders surrounded Seagate Technology (STX), seeking a short-term rise this week.
  3. One bullish investor upped the ante on Las Vegas Sands (LVS) by rolling positions to a higher strike.
  4. Netflix (NFLX) saw a flurry of short-term call action, with traders looking for today's momentum to continue through the week.
  5. Bulls also stuck by Oracle (ORCL) despite a post-earnings drop.

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 :

Stronger-than-forecast durable goods data pushed crude futures to a five-week high Tuesday. Oil for May delivery finished at $96.34 a barrel, up $1.53, or 1.6%.

Gold futures fell back on lower safe-haven demand -- dropping back below $1,600 per ounce. April-dated gold closed at $1,595.70 per ounce, giving up $8.80, or 0.6%.

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: BBRY , F , GOOG , INTC , SINA

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