Thursday’s Options Alerts
After gapping down, the major
indexes attempted to reverse course, though headed south to the day’s lows by
11:30 a.m. ET, where the bulls took over and pushed price higher. A selloff in
the final half-hour kept the indexes underwater for the day.
The Dow Jones Industrial
Average ($INDU.X)
closed -0.42% at 8172.45. The S&P 500 ($SPX.X)
closed -0.46% at 869.46. The Nasdaq ($COMPQ)
closed -0.61% at 1252.13.
The biggest gainers on the day
were utilities ($UTIL),
+3.24%, biotechnology ($BTK),
+1.69%, and
healthcare ($HMO),
+0.88%.
The biggest losers on the day
were
airlines ($XAL),
-5.04%, networking ($NWX),
-3.00%, and banks ($BKX),
-1.89%.
After breaking down through the
necklines of head-and-shoulders patterns yesterday, the major indexes attempted
to put in a reversal, but it just couldn’t stick into the close. Today’s selling
has been largely attributed to Dow component JP Morgan, which was pointed out by
Tony Saliba to have a wider reaching potential into other companies.
U.S. Treasury Bonds
closed down ‘4 at 112 ’25.
In economic news, the August
consumer price index rose 0.3% for both the overall and core reading.
Analysts were expecting 0.2% for both numbers. Also, July trading showed a
deficit of $34.6 billion vs. an expected deficit of $37 billion.
Volume was better than
average at 1,452,395,000
on the NYSE, and 1,555,680,000
on the Nasdaq.
Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 1.53, and down
volume over up volume by a 2.12 ratio. Nasdaq declining issues over advancing
issues came in at 1.57, and down volume beat up volume by a 2.26 ratio.
The
VIX was +1.42 at 41.96. The
TRIN was +1.78 at 2.80.
Leading the Dow, photography giant Eastman Kodak (EK),
+2.82% at 28.39, said that they expect to meet their profit outlook for the rest
of the year, as it raised estimates for its full-year operating cash flow.
Also higher in the Dow were 3m Company (MMM),
+1.43% at 118.35, Boeing (BA),
+1.32% at 36.77, and Phillip Morris (MO),
+1.22% at 47.07.
Leading the Dow down, investment bank JP Morgan (JPM),
-5.5% at 20.44, had its shares slaughtered after it lowered its third quarter
outlook while claiming results will be "well below" its second quarter earnings.
Also down in the Dow were Allied Capital Corp. (ALD),
-6.65% at 20.61, McDonalds (MCD),
-3.86% at 18.18, and International Paper (IP),
-3.20% at 33.55.
Points of Significance:
Volatility Index |
Close |
Net Change |
Signals/Direction |
% Above/Below 10 Day Moving Average |
Significance |
|
( $VIX.X | Quote | Chart | News | PowerRating) |
40.89 | DOWN 1.07 |
CVR I buy | 2.66% Below |
Not At Extreme |
|
( $VXN.X | Quote | Chart | News | PowerRating) |
59.35 | DOWN 1.04 | None | 4.23 % Below |
Not At Extreme |
Abnormal Options Volume With Price
Movement — Abnormal options volume (calls and puts)
with stock price movement
Name |
Symbol |
Net % Change |
Volume |
Avg. Volume |
| Celestica | ( CLS | Quote | Chart | News | PowerRating) |
-17.17 | 6046 | 503 |
Hershey Foods |
( HSY | Quote | Chart | News | PowerRating) |
-11.93 |
53334 |
9351 |
| Cheesecake Factory | ( CAKE | Quote | Chart | News | PowerRating) |
+10.68 | 356 | 136 |
Carmax |
( KMX | Quote | Chart | News | PowerRating) |
-9.14 |
2465 |
662 |
| Circuit City | ( CC | Quote | Chart | News | PowerRating) |
-8.21 | 1970 | 904 |
Georgia Pacific |
( GP | Quote | Chart | News | PowerRating) |
-7.05 | 6240 |
774 |
Stocks With Biggest Spikes in Implied
Volatility — Stocks with biggest increases or
decreases in implied volatility compared to previous day
Spike Up
Name |
Symbol |
IV |
Previous IV |
High IV |
Low IV |
| PennzEnergy | ( PZL | Quote | Chart | News | PowerRating) |
15.5 | 10.7 | 43.2 | 12.9 |
| Allied Capital | ( ALD | Quote | Chart | News | PowerRating) |
54.4 |
39.5 |
84.2 |
28.1 |
| Universal Health |
( UHS | Quote | Chart | News | PowerRating) |
42.1 |
33.5 |
50.0 |
27.5 |
| Northeast Utilities |
( NU | Quote | Chart | News | PowerRating) |
37.1 |
29.9 |
30.9 |
20.6 |
| Doral Financial | ( DORL | Quote | Chart | News | PowerRating) |
76.8 |
62.8 |
50.7 |
24.3 |
| Plexus | ( PLXS | Quote | Chart | News | PowerRating) |
93.7 |
77.7 |
78.2 |
55.1 |
Spike Down
Name |
Symbol |
IV |
Previous IV |
High IV |
Low IV |
| Nike, Inc. | ( NKE | Quote | Chart | News | PowerRating) |
45.89 | 51.4 | 54.5 | 27.2 |
| Southern Company |
( SO | Quote | Chart | News | PowerRating) |
32.7 | 36.4 | 34.2 | 18.9 |
| Texas Utilities | ( TXU | Quote | Chart | News | PowerRating) |
37.3 | 42.9 | 61.6 | 16.8 |
Please use stops on every trade!