"One thing we've seen this year is that every dip has been
aggressively bought," noted Schaeffer's Senior Technical Strategist
Ryan Detrick, CMT. "The longest losing streak in 2013 was just four
days, set last month (and matched today). We're getting near the
end of the month and quarter, so there is always a chance for some
late-quarter buying. Still, with talk of a potential government
shutdown coming up soon, there is always a chance for some
news-induced volatility on the horizon." Meanwhile, as debt-ceiling
negotiations raged on in Washington, the
Dow Jones Industrial Average (DJI)
closed solidly in the red.
Continue reading for more on today's market, including
- Schaeffer's Senior Trading Analyst Bryan Sapp discusses the
Russell 2000's (RUT)
new all-time high
, as well as his expectations for the S&P 500 Index
- In his latest
Chart of the Day
, Senior Options Strategist Tony Venosa, CMT, lists 12 reasons
why bulls should keep an eye on Questcor Pharmaceuticals (
- This week's installment of
takes a closer look at recent trading activity on these three
former Dow components.
Home prices edged higher in July, Applied Materials (
) announced plans to merge with a Japan-based rival, and option
bears ignored Baidu's (
) new high.
Dow Jones Industrial Average (DJI - 15,334.59)
had a bit of a roller coaster ride today, as it trended lower
during the morning hours of trading, then cruised higher in the
early afternoon. By the close, however, the blue-chip barometer was
down 66.8 points, or 0.4% -- just above its session low of
15,327.14. The Dow's nine advancers were led by Boeing's (
) 1.3% gain, while JPMorgan Chase (
) paced the 21 laggards with a decline of 2.2%.
S&P 500 Index (SPX - 1,697.42)
experienced some choppy price action of its own, touching an
intraday low of 1,694.90 within the first hour of the session, and
then rising to an intraday high of 1,707.63 just before 2:00 p.m.
ET. By the end, it was the same story, with the index finishing 4.4
points, or 0.3%, lower -- and below the key 1,700 level. Meanwhile,
Nasdaq Composite (COMP - 3,768.25)
"outperformed" its peers, adding 3 points, or 0.1%, on the day.
CBOE Market Volatility Index (VIX - 14.08)
spent most of the session in the red, and closed 0.2 point, or
A Trader's Take
"Housing had some good news, as both Lennar (LEN) and KB Home
(KBH) reported strong earnings," Detrick went on. "It is
interesting, because yields took a big dip today, and long-term
bonds had a positive session. At the same time, the dip in yields
could be a good sign for housing, as it sparked a big rally within
3 Things to Know About Today's Market
- A pair of
hit the Street today, with both showing monthly and
year-over-year gains. The S&P/Case-Shiller 20-city home price
index climbed 1.8% in July, and 12.4% during the past year -- the
latter marking its quickest annual pace since 2006. Meanwhile,
the Federal Housing Finance Agency (FHFA) said home prices
increased by a seasonally adjusted 1% in July, and advanced 8.8%
from the year-ago period.
- The Conference Board revealed that its
consumer confidence index
fell to a lower-than-expected 79.7 in September -- its weakest
level since May -- from last month's reading of 81.8.
Additionally, the gauge for measuring expectations over the next
six months dropped to 84.1 from a reading of 89. The declines
were attributed to growing anxieties regarding unemployment and
limited wage increases, which could have an impact on consumer
- Applied Materials (
) shares surged today, after the firm announced plans to
merge with Tokyo Electron
. The all-stock deal will result in a new company worth $29
billion, although it will retain two separate listings on the
Nasdaq and Tokyo Stock Exchange. Once the deal is complete, AMAT
shareholders will own roughly 68% of the new company, while those
owning Tokyo Electron stock will make up the remaining 32%.
5 Stocks We Were Watching Today
scored a round of bullish brokerage notes, despite the security's
- Option bears were undeterred by
new annual high, and picked up front-month puts.
- Call volume spiked on
JetBlue Airways (JBLU)
, but one block trader may have been a skeptic in disguise.
- A closer look at uptrending
shows a bearishly skewed sentiment backdrop.
- A price-target hike at J.P. Morgan Securities triggered some
positive price action for
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures declined for a fourth straight day, as hopes for
diplomatic solutions with Syria and Iran weakened oil prices. By
the closing bell, November-dated crude edged down 46 cents, or
0.4%, to finish at $103.13 per barrel.
Meanwhile, gold futures also fell, as renewed tapering concerns
weighed on the precious metal. Gold for December delivery dropped
$10.70, or 0.8%, to close at $1,316.30 an ounce.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.