Oct 092012

Follow These Top Movers – Big Name Stocks On A Roll

As the Dow Jones Industrial Average (DJI – 13,473.53) dove roughly 110.3 points just minutes before the closing bell, the index finished slightly higher than its session low. On the day, the Dow lost 110.1 points, or 0.8%, finishing below its 10- and 20-day moving averages for the first time since September 5. All but three of the 30 blue chips ended in negative territory, as Intel Corporation’s (NASDAQ:INTC)analysts-related dip of 2.7% paced the losing issues. On the other hand, McDonald’s Corporation (NYSE:MCD) led the winners with a 0.6% rise.

The S&P 500 Index (SPX – 1,441.48) ripped back 14.4 points, or nearly 1%, closing below its 20-day moving average for the first time in a nearly a week. The broad-market barometer also notched a close below its 10-week trendline for the first time since June 22.

The Nasdaq Composite (COMP – 3,065.02) turned in the worst performance of its fellow benchmarks, sawing off 47.3 points, or 1.5%, finding its lowest daily settlement since August 30. The tech-rich COMP also notched a close below its 10-week trendline for the first time since June 22.

The CBOE Market Volatility Index (VIX – 16.37) gained 1.3 points, or 8.3%, to find a foothold at its loftiest price since September 26, though the 80-day moving average hovers above.

Today’s highlight: “Today, everyone’s eyes were on third-quarter earnings, as they get started with Alcoa Inc. (NYSE:AA),” noted Bell. “Earnings are expected to decline for the first time since the third quarter in 2009, which makes it all the more heavily anticipated.”

Not only did AA grab notable attention on Wall Street today, but so did tech behemoth Apple Inc. (NASDAQ:AAPL) … Click here for more.

Turning to today’s major market stories…

      Put players waxed pessimistic on the

SPDR S&P Homebuilders (ETF) (NYSEARCA:XHB)


  • Option bulls strengthen their positions on Starbucks Corporation (NASDAQ:SBUX) while beleaguered RadioShack Corporation (NYSE:RSH) saw an unusual uptick in call buying.
  • Pharmaceutical concern Eli Lilly & Co. (NYSE:LLY) jumped to an brokerage-induced new high.
  • Research In Motion Limited (NASDAQ:RIMM) extended its run atop a formerly supportive trendline, enticing weekly call buyers.
  • Near-term put writing popped up on Nokia Corporation (ADR) (NYSE).
  • January-dated puts were popular with Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR) bears.
  • Downbeat analysts weighed in on Dow heavyweight Hewlett-Packard Company (NYSE:HPQ), while casino operator Las Vegas Sands Corp. (NYSE:LVS) was met with a price-target hike.
  • Be sure to check out these four high-flying stocks with contrarian potential

Though mired in the red for the majority of the session, the Dow Jones Industrial Average (DJI) didn’t retreat to its intra-day worst of 13,473.31 until the last moments of trading. “It was another relatively quiet day for the market, although technology stocks continued to lag,” remarked Schaeffer’s Senior Equities Analyst Joe Bell. “Intel Corporation (NASDAQ:INTC) was hit with a downgrade, which sent the shares surging lower. The trend of cutting guidance for this group continues and we are seeing a lot of underperformance.  Energy and coal stocks really stepped up, though, and performed well.”
Click through to see what else was on our radar today:

  • 4 big-name stocks at all-time peaks that could enjoy contrarian tailwinds.
  • Option bears continue to rail against the outperforming homebuilding sector.
  • Plus, Joe Bell examined two “A” stocks on the move: Alcoa Inc. (NYSE:AA) and Apple Inc. (NASDAQ:AAPL).
What’s Buzzing on the Daily Option Blog
Questcor Option Buyers See Struggles Ahead
Nokia Traders Bet On Familiar Support
Starbucks Speculators Stay Hopeful
Option Volume Briefs: Bears Still Betting Against the Homebuilders
RadioShack Rebound Spurs Bulls Into Action

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