Something's not right

By Julian Close,

Shutterstock photo

After the Open... Yesterday's mini-rally failed to gain momentum with traders this Tuesday morning. Stocks opened in the red and appear to be headed lower. Call it what you will, but there's a distinct gloominess about the market this morning. But what is the cause? A warning from Target ( TGT ) suggesting that retail earnings may disappoint? The further entrenching of economic sanctions against Russia ?

There is ample good news as well, including a better than expected Factory Orders report for June, impressive earnings reports from Time ( TIME ), Coach ( COH ) and Cablevision ( CVC ), as well as a the successful split up of Gartner ( IT ), but it seems as if even positive earnings can't lift investors' spirits in the face of rising geopolitical tension.

Here are your Tuesday morning market metrics. Industries doing well today include Distributors, Textiles Apparel & Luxury Goods, and Aerospace & Defense. Industries showing weakness include Energy Equipment & Services, Multiline Retail, and Semiconductors & Equipment.

The VIX is up 4.4% to 15.79 after closing on Monday at 15.12, having fallen from a recent high of 17.12 on Monday morning. Intel (INTC) options are the most actively traded today, with 9,953 August 22 33 puts changing hands, and another 7,814 August 33.5 puts as well. All these changed hands at the bid price , meaning someone is aggressively selling puts. That is probably a bullish play, but could be a hedge against a large short position. The put-call volume ratio is 1.18, (204,629/242,316). NYSE Adv/Dec 851/2,095. Nasdaq Adv/Dec 937/1,433. [InvestorsKeyhole, various news and data sources]

Julian Close has been a business writer since the first day of the twenty-first century, having written for PRA International and the United Nations Department of Peacekeeping. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. He became a stockbroker in 1993, but now works for Fresh Brewed Media and uses his powers only for good. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC .

This article was originally published on

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: TGT , TIME , COH , CVC , IT

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