The day has come–after 14 straight sessions without a .5% market move for the first time since 1995, stocks sold off. Across the board losses seemed to coincide with “Sell The Fact,” a prime example being Apple as the stock unwound. AAPL got within $.75 of the record before closing at $97.99.
After new NDX Nasdaq 100 index record highs above 4111, the tech slide finished at 4062, down 33 points. The .8% loss led index losers with yet another technical key reversal to watch on a weekly basis, keeping an eye out for trend stall signals.
Super video cam maker GOPRO posted new highs Tuesday at $68, with the close at $64.19, up 1%. The June IPO price was $24 to total a 125% jump for lucky investors. In a possible stock substitution play, a trader was buying blocks of the January ITM $45 calls to total nearly 10,000 contracts. The $20 premium position ties up less capital and has less risk than owning shares outright.
Second place in the negative index race had the broad market S&P 500 SPX minus 13 points to 1988, and a .65% drop. The downturn added more than 6.5% in the VIX to close at $13.50.
The double digit two day performance has volatility more than 30% above the year lows. Options still failed to manage a full days average volume, trading 468,000 contracts at 90% normal activity.
BOYD Gaming stock lost 3%, ending at $11.40 yesterday, though far out of the money call activity was bullish. The December $15 calls traded 5000 contracts against open interest of 1000, looking like new buys at the ASK for about a quarter. The 52-week high at $14.75 was made last October.
The Dow 30 held losses to less than triple digits with the close at 17,013 (-97) for a best in show .5%+ drop.
In a story devoid of politics and ALL ABOUT PRICE, United Health posted record highs closing at $88.56 up .75% on a down day. The 17% YTD performer in UNH was one of only 6 green blue chips. Options traded 14x average volume on 63,000 contracts with 96% calls in dividend capture plays.
Stocks to watch this morning include:
Microsoft is reported to be interested in Swedish game maker Minecraft in a $2 billion dollar acquisition. MSFT is trading at $46.90 in the pre market this morning.
Not time to make the donuts, as Krispy Kreme is down 5% at $16.50 after missing earning expectations.
EBAY is down 1% after a 3% loss as analysts opine stating that Paypal will face more competition with the Apple foray in the online payment business.
Overseas markets have The Nikei in Japan is plus .25% to lead the day once again. Europe is mixed and steady as the FTSE in London is barely plus and the DAX in Germany is barely negative.
Stock index futures prices are steady with the Emini S&P plus 1 point. The Dow futures are 5 points higher here this morning with an hour to go before the open of the cash stock market.