Weak Tech, Solid Housing; Stocks End Day on Sour Note

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The Dow Jones Industrial Average (DJI) traded in positive territory several times today, but headed south after lunchtime, finding its first loss in the past five sessions.

"Say what you want about technology lagging today. The reality is, tech has performed poorly for nearly a month now," noted Schaeffer's Senior Technical Strategist Ryan Detrick. "What stood out to me is that housing once again bucked the trend and had a good day. Some wise advice that is easier said than done is to play the trends until they don't work anymore." Ryan continued, "My friends, tech is going down and housing is going up. I have no clue how that will end, but it's reality. And as traders, it's our job to trade the major trends."

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

Dow Jones Industrial Average (DJI - 13,548.94) AXP TRV PG

Both the S&P 500 Index (SPX - 1,457.34) and Nasdaq Composite (COMP - 3,072.87) turned lower today, ending a their three-session uptrend. The SPX slipped 3.6 points, or 0.2%, while the COMP retreated 31.3 points, or 1%. This worst performance of three benchmarks was highlighted by Google Inc's ( GOOG ) "premature" earnings release.

The CBOE Market Volatility Index (VIX - 15.03) edged south by 0.3%, but bounced from its session low of 14.68.

Today's highlight : When asked what topped today's market headlines, Detrick answered with a smirk, "Gee, I have no clue. Maybe Google dropping a total bomb on the head of an unsuspecting market during the lunch hour? Yeah, that is probably the headline from today's trading."

Noteworthy stats at the close:

  • The equity put/call volume ratio across all 10 options exchanges ended at 0.78, with 8.9 million calls traded today, versus 7 million puts.
  • The put/call volume ratio on the iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX - 32.88) -- which tagged another split-adjusted record low of 32.48 -- checked in at 1.46, with puts easily trumping calls.
  • The New York Stock Exchange (NYSE) showed an advance/decline ratio of 0.93, signaling the number of upward movers was eclipsed by decliners. Meanwhile, the advance/decline ratio of 0.45 on the Nasdaq confirmed that the number of upward movers was more than doubled by the declining stocks.

Explore our Trading Floor Blog and Daily Options Blog for coverage on today's big stories, including:

And, in case you missed it ... Semiconductor stocks could be the key to a reversal in recent tech-sector weakness .

For today's activity in commodities, options, and more, head to page 2.

Once again, oil futures didn't travel very far from breakeven today, as speculators contemplated global demand concerns amid economic data from the U.S. and China. Crude for November delivery inched fractionally lower, giving up 2 cents and closing at $92.10 a barrel.

Gold futures notched a loss today, on a strengthening dollar and weakness in the broader equities market. Concerns about Germany and France's commitment to the economically challenged euro zone also kept the malleable metal in the red. December-dated gold fell $8.30, or 0.5%, to settle at $1,744.70 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,548.94) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,457.34) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,072.87) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

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.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: AXP , FB , GOOG , PG , TRV

Schaeffer's Investment Research

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