Dow Jones Industrial Average (DJI)
swayed 78 points today, but ultimately finished near breakeven.
"With the bond market and banks closed for Veterans Day, it was a
slow and boring session. Then again, after the big selling we saw
last week, maybe a boring day isn't so bad," remarked Schaeffer's
Senior Technical Strategist Ryan Detrick. "One thing I read and
heard a lot about was the action in the CBOE Market Volatility
Index (VIX). The VIX and other volatility-based instruments were
absolutely crushed. A lot of people wondered how this could happen
when the market was pretty much flat," continued Detrick. "Clearly
they didn't read what Todd Salamone wrote in
Monday Morning Outlook
over the weekend. The reality is we saw some
call volume leading up to the election. With that event in the
books, everyone 'pre-bought' volatility and now implied volatility
Chart of the Day
: Nine reasons why Schaeffer's Senior Options Strategist Tony
Venosa, CMT, thinks
First Solar (
) could light up the charts
Daily Game Plan
: Schaeffer's Senior Trading Analyst Bryan Sapp contemplates the
old investing mantra,
"Never short a dull market."
And now, a look at the numbers...
Stocks experienced see-saw action today, but came to rest in
negative territory, swallowing a very narrow loss. As such, the Dow
Jones Industrial Average (DJIA) settled below its 200-day moving
average for a fourth day.
Elsewhere, the S&P 500 Index (SPX) settled fractionally
higher, but couldn't surmount its 200-day moving average.
Meanwhile, the Nasdaq Composite (COMP) was also little moved, but
turned fractionally lower by the close.
The CBOE Market Volatility Index (VIX) took a hit today,
drifting below its own 200-day moving average. The VIX ripped off
roughly 10%, parking at its lowest point since Oct. 22.
: "Yet again, merger-and-acquisition activity was strong. We've
seen a lot of this occurring on Mondays over the past few months,
and today was no different," said Detrick. "There were three deals
that went down, and all three showed substantial value in the
companies versus what Wall Street believed. The big movers were
), Titanium Metals (TIE), and Crexus Investment (CXS). Overall,
things are tricky here, but I continue to think deals like we've
been seeing are rather bullish longer-term."
More of today's big stories
And, in case you missed it
has been building in the Merrill Lynch Semiconductors HOLDRS ETF
(SMH)... Is a breakout on tap?
For today's activity in commodities, options, and more, head
to page 2.
Oil futures started the week on a negative note, as traders
remain wary of the looming fiscal cliff. However, rising tensions
between Israel and Syria created a floor for black gold, keeping
the commodity's losses to a minimum. By the close, crude for
December delivery fell 50 cents, or 0.6%, to close at $85.57 per
Gold ended a quiet session completely flat, as the Veterans Day
holiday translated into an uneventful session. For the second
consecutive day, gold for December delivery finished squarely at
$1,730.90 per ounce, having bounced between a high of $1,738 and a
low of $1,725.20.
Levels to watch in trading...
Dow Jones Industrial Average (DJI - 12,816.70)
- support at 11,500; resistance at 14,000
S&P 500 Index (SPX - 1,380.00)
- support at 1,100; resistance at 1,500
Nasdaq Composite (COMP - 2,904.25)
- support at 2,400; resistance at 3,400
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.