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| Dow Jones 2006 (Photo credit: caseorganic) |
Minor correction is likely to provide better entry prices for stocks
Sept.21 swing trading .-The headline Thursday was “Dow Ends in the Black,” but it sure struggled to get there. Stocks opened weak in response to bearish economic news from Japan, France and China, and U.S. jobless claims were higher than expected. The Dow fell 70 points in the first 25 minutes of trading and spent the remainder of the day clawing its way back to just over breakeven. It was positive statements from the Fed and a successful Spanish bond auction that brought the major indices back from the lower opening.
At Thursday’s close, the Dow Jones Industrial Average was up 19 points at 13,597, the S&P 500 fell a point to 1,460, and the Nasdaq fell 7 points to 3,176. The NYSE traded 678 million shares and the Nasdaq crossed 413 million. Decliners led advancers on both exchanges by about 1.5-to-1.
Today is a quadruple witching day — the day on which contracts for stock index futures, stock options, stock index options, and single stock futures all expire. The week of quadruple witching can be a wild ride and the day characterized by terrifying swings, but thus far the markets have had light volume and modest volatility.
It’s true that Thursday started with a 70-point drop, but the remainder of the day was spent in a steady climb back to breakeven. And the CBOE Volatility Index (VIX), also known as the fear index, ... Continue to read.
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