Wang's Happy Trading

Stocks popped for a new leg up today, pushing SPX to close above 1650! Financials led the rally: GS +3.27%; MA +2.49%; AIG +3.23%. Recent high flyers include TSLA, which went from $55-and-change to today’s high of $97.12 in just 4 trading sessions! GOOG has also been ramping up non-stop, almost hitting $890 today. 3D-printing stocks have also faired well: both DDD and SSYS made new all-time highs today!

So, how high can this market go without a respite?! Well, I think the market is about to take one. SPX 1650 could be a psychological barrier, one of those "whole number" levels! Technically speaking, the market is toppy. I would really find it unlikely to go push higher without some consolidation. If it continues to push higher without a break, it’ll have to go parabolic! This bull market, though, is unlike the tech boom back in 2000. This time, the Dow and SPX are leading the way, which means the rally is broadly based. In fact, techs, so far, have been lagging!

One group that really took off today was the education and training services. ESI vaulted almost +18%! APOL gained more than +9%. COCO popped +8.46%. DV added +5.49%. Let’s keep our eyes on this group. I think a lot of shorts will need to cover their positions in these stocks!

We didn’t chase the market today. We’ll see how the market does tomorrow. If the market keeps going, I wouldn’t complain if this rally turns parabolically higher!

Good night and HappyTrading! ™

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Happy Mother’s Day!

The markets continued to plow higher. The Dow pushed through 15,000 and SPX closed above 1630. Nasdaq broke out above 3400. We also had a great week. SWKS calls gave us a +57% gain; we’ve held on to this since earnings. SOHU calls turned in a +163 profit. SOHU continued to push higher throughout the week on M&A activities in the Chinese internet space. CF produced a +93% win on eanings. APA calls were an overnight gain of +121% on earnings. Here are the closed trades for the week:

• 12:43 | Ecstatic Plays GOOG ($878.00) Sold to Close 05880 May 880 calls, at $8.00 +4%
• 12:15 | Ecstatic Plays GOOG ($879.00) Sold to Close 05C880 May 880 calls, at $8.70 +13%
• 10:53 | HappyTrading SWKS ($23.60) Sold to Close 05C21 May 21 calls, at $2.67 +57%
• 12:05 | HappyTrading AAPL ($458.00) Sold to Close 05C470 May 470 calls, at $2.70 -40%
• 11:55 | HappyTrading CMG ($370.00) Sold to Close 05C375 May 375 calls, at $3.20 -24%
• 08:52 | HappyTrading FFIV ($79.35) Sold to Close 05C75 May 75 calls, at $4.60 +48%
• 07:03 | Ecstatic Plays SINA ($57.70) Sold to Close 05C55 May 55 calls, at $3.90 +10%
• 06:47 | HappyTrading CF ($194.70) Sold to Close 05C185 May 185 calls, at $10.25 +93%
• 06:44 | Ecstatic Plays APA ($81.50) Sold to Close 05C75 May 75 calls, at $6.40 +121%
• 12:55 | Ecstatic Plays SINA ($57.80) Sold to Close 05C55 May 55 calls, at $4.15 +17%
• 12:47 | HappyTrading CF ($191.15) Sold to Close 05C185 May 185 calls, at $8.50 +60%
• 09:33 | Ecstatic Plays BIDU ($92.50) Sold to Close 05C90 May 90 calls, at $3.45 +17%
• 07:27 | HappyTrading SOHU ($54.90) Sold to Close 05C50 May 50 calls, at $5.00 +163%
• 10:37 | Ecstatic Plays DXJ ($48.53) Sold to Close 05C47 May 47 calls, at $1.80 +20%
• 10:26 | Ecstatic Plays SLB ($76.80) Sold to Close 05C75 May 75 calls, at $2.30 +28%
• 08:19 | HappyTrading FFIV ($77.80) Sold to Close 05C75 May 75 calls, at $3.25 +5%
• 08:18 | HappyTrading APC ($87.80) Sold to Close 05C85 May 85 calls, at $3.35 +34%

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If you’re still waiting on the sideline, you’ve gotta come into this market! There are both quick and steady money to be made!

GOOG’s glasses seem to be catching a lot of attention. Its stock seems to be on its way to $900+ and it wouldn’t surprise me to see GOOG testing $1000 this years. PCLN popped after earnings and is looking for a breakout; even EXPE bounced. Kuwait just made a $3 billion deal with Airbus; it’ll be interesting to see how BA trades on Monday. I suspect that if BA gets a pullback, dip-buyers will come in within a couple of days. Commodities were weak on Friday as the dollar rose. Financials seem to be hold steady. Biotechs were strong again on M&A activities. We’ll look at these sectors in more detail later on this evening in my weekly Market Forecast & Sector Watch.

Happy Mother’s Day and HappyTrading! ™

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Last weekend, in my Market Forecast, I wrote:

"For the new week, although SPX did climb back above 1580, we’ll have to see if the market can continue on its bullish trend. It seems to be testing 1580 right now. On Wednesday, we’ll get the latest rate decision. We may see a slow start to begin the week. Of course, plenty of earnings are still coming in. We’ll be watching the commodities this week. I think if we see some rotation and/or new money going into the lagging sectors, this market can keep climbing."

The market glided higher on Monday and Tuesday, but, took a nosedive on Wednesday as the PMI data from China was lower than expected. However, dip-buyers immediately came in on Thursday and stocks quickly recovered. On Friday, the latest jobs report showed further improvement and stocks jumped. Major market indices finished at new all-time highs!

For the week, the Dow was up +261.41 points; SPX gained +32.18 points; Nasdaq jumped points. Gold bounced a bit, trading at near $1470/ounce. Oil also went up, closing just below $97/barrel. At the time of this writing, Asian markets were higher. Let’s see where the US markets closed on Friday:

SPX

SPX added +16.83 points to close at 16142.42. Its daily MAs and MACD went up.

Nasdaq

Nasdaq popped +38.01 points to close at 3378.63. Its daily MAs and MACD also went higher.

Both SPX and Nasdaq broke out higher. Nasdaq was especially strong on Friday. VIX sank to below 13! For the new week…

To read the rest of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services (click here) page. If you are already a subscriber, please click here: Market Forecast 5/3/13.

The market has been up every month since the beginning of this year! Every time the market pulled back, big buyer came in and drove the market even higher! This month was no exception. Two weeks ago, stocks took a breather and experienced some profit-taking. But, another week later, we were looking at new highs again!

We’ve had a very nice month, with most of our trades on the plus side! This week, AAPL calls gave us a nice +118% gain! BA earnings play scored a +114% profit. PCLN puts was a nice intraday +126% win on a quick pullback! CTXS puts were a play on IBM earnings and took in a near-triple. There were many other great trades, and here they are:

• 12:28 | Ecstatic Plays FB ($27.80) Sold to Close 05C27 May 27 calls, at $1.73 +23%
• 12:26 | HappyTrading FB ($27.80) Sold to Close 05C27 May 27 calls, at $1.73 +28%
• 07:39 | Ecstatic Plays AAPL ($428.00) Sold to Close 0503C415 May 415 calls, at $14.40 +118%
• 07:27 | Ecstatic Plays AAPL ($426.80) Sold to Close 0503C415 May 415 calls, at $13.40 +103%
• 07:12 | Ecstatic Plays AAPL ($422.50) Sold to Close 0503C415 May 415 calls, at $11.45 +73%
• 11:15 | Ecstatic Plays AAPL ($415.70) Sold to Close 0503C415 May 415 calls, at $6.00 +22%
• 11:44 | HappyTrading SOHU ($50.50) Sold to Close 05C50 May 50 calls, at $2.60 +36%
• 06:53 | Ecstatic Plays PG ($77.85) Sold to Close 05P77.5 May 78 put, at $1.51 +28%
• 09:57 | Ecstatic Plays AAPL ($413.90) Bought to Open 0503C415 May 415 calls, at $4.90 (EXPIRED)
• 11:48 | HappyTrading CELG ($119.70) Sold to Close 05P120 May 120 put, at $4.10 +32%
• 09:52 | Ecstatic Plays PNC ($68.00) Sold to Close 05C67.5 May 68 calls, at $1.41 +57%
• 09:36 | HappyTrading CREE ($57.60) Sold to Close 05C55 May 55 calls, at $3.80 +9%
• 07:11 | Ecstatic Plays WYNN ($131.50) Sold to Close 05C130 May 130 calls, at $4.85 +43%
• 06:54 | HappyTrading HES ($70.10) Sold to Close 05C67.5 May 68 calls, at $3.45 +25%
• 06:44 | HappyTrading HES ($70.00) Sold to Close 05C67.5 May 68 calls, at $3.40 +23%
• 06:37 | HappyTrading BA ($92.40) Sold to Close 05C87.5 May 88 calls, at $5.10 +114%
• 09:50 | Ecstatic Plays WYNN ($129.00) Sold to Close 05C130 May 130 calls, at $3.50 +13%
• 09:34 | HappyTrading CREE ($57.87) Sold to Close 05C55 May 55 calls, at $4.90 +40%
• 07:46 | Ecstatic Plays GOOG ($814.20) Sold to Close 0426C810 Apr 719 calls, at $9.00 +34%
• 12:01 | Ecstatic Plays GOOG ($801.30) Sold to Close 0426C800 Apr 800 calls, at $8.10 +9%
• 07:22 | HappyTrading OXY ($79.50) Sold to Close 05P80 May 80 put, at $2.70 +46%
• 07:16 | Ecstatic Plays BIDU ($86.25) Sold to Close 05P87.5 May 88 put, at $4.85 +3%
• 07:05 | Ecstatic Plays CTXS ($66.70) Sold to Close 04P70 Apr 70 put, at $3.30 +187%
• 09:15 | HappyTrading OXY ($80.50) Sold to Close 05P80 May 80 calls, at $2.29 +24%
• 08:52 | Ecstatic Plays CTXS ($67.70) Sold to Close 04P70 Apr 70 put, at $2.25 +96%
• 08:32 | Ecstatic Plays PCLN ($690.30) Sold to Close 04P700 Apr 700 put, at $11.30 +126%
• 07:06 | Ecstatic Plays PCLN ($695.80) Sold to Close 04P700 Apr 700 put, at $8.30 +66%
• 07:01 | Ecstatic Plays AAPL ($413.30) Sold to Close 04C425 Apr 425 calls, at $1.08 -77%
• 08:01 | Ecstatic Plays VLO ($39.15) Sold to Close 04P40 Apr 40 put, at $1.25 +6%
• 07:41 | HappyTrading BIDU ($89.75) Sold to Close 05C90 Apr 90 calls, at $1.34 -31%
• 07:14 | Ecstatic Plays BIDU ($89.60) Sold to Close 04C90 Apr 90 calls, at $1.25 -36%
• 12:11 | Ecstatic Plays PSX ($60.50) Sold to Close 04P60 Apr 60 put, at $1.00 -26%
• 08:34 | HappyTrading AIG ($39.90) Sold to Close 04C39 Apr 39 calls, at $1.07 -24%
• 07:48 | Ecstatic Plays DDD ($34.50) Sold to Close 04C35 Apr 35 calls, at $0.60 -56%
• 07:46 | Ecstatic Plays AAPL ($431.80) Sold to Close 04C440 Apr 440 calls, at $3.15 -33%
• 07:06 | Ecstatic Plays NFLX ($175.20) Sold to Close 04C170 Apr 170 calls, at $7.80 +20%
• 06:58 | HappyTrading JOY ($52.10) Sold to Close 04P55 Apr 55 put, at $3.15 +184%
• 10:56 | Ecstatic Plays HLF ($39.20) Sold to Close 04C40 Apr 40 calls, at $1.75 +59%
• 09:19 | Ecstatic Plays AAPL ($434.70) Sold to Close 04C440 Apr 440 calls, at $4.70 -6%
• 09:06 | HappyTrading LVS ($55.00) Sold to Close 04C52.5 Apr 53 calls, at $2.70 +8%
• 07:16 | HappyTrading SODA ($53.90) Sold to Close 04C50 Apr 50 calls, at $4.00 +63%
• 07:11 | HappyTrading SODA ($53.77) Sold to Close 04C50 Apr 50 calls, at $3.80 +55%
• 11:46 | HappyTrading SODA ($52.20) Sold to Close 04C50 Apr 50 calls, at $2.45 +26%
• 11:45 | Ecstatic Plays QCOM ($67.35) Sold to Close 04C65 Apr 65 calls, at $2.52 +20%
• 11:43 | HappyTrading QCOM ($67.35) Sold to Close 04C65 Apr 65 calls, at $2.52 +20%
• 07:32 | HappyTrading GLD ($152.10) Sold to Close 04C152 Apr 152 calls, at $0.70 -53%
• 11:20 | Ecstatic Plays LVS ($54.20) Sold to Close 04P52.5 Apr 53 put, at $0.63 -70%
• 10:48 | HappyTrading AMZN ($255.00) Sold to Close 0412P255 Apr 255 put, at $3.40 +28%
• 07:20 | HappyTrading AMZN ($254.00) Sold to Close 0412P255 Apr 255 put, at $4.30 +62%
• 09:16 | Ecstatic Plays WHR ($111.50) Sold to Close 04P115 Apr 115 put, at $4.50 +36%
• 08:13 | Ecstatic Plays WHR ($112.00) Sold to Close 04P115 Apr 115 calls, at $4.00 +21%
• 11:55 | HappyTrading CERN ($92.30) Sold to Close 04C95 Apr 35 calls, at $1.00 -33%
• 08:11 | Ecstatic Plays BIDU ($88.20) Sold to Close 04C87.5 Apr 88 calls, at $2.42 -7%
• 07:10 | HappyTrading LNKD ($173.80) Sold to Close 04P170 Apr 170 put, at $3.75 +7%
• 06:57 | HappyTrading LNKD ($172.00) Sold to Close 04P170 Apr 170 put, at $3.90 +11%
• 11:35 | HappyTrading STX ($36.75) Sold to Close 04C35 Apr 35 calls, at $2.31 +24%
• 09:45 | Ecstatic Plays NFLX ($183.00) Sold to Close 0405P185 Apr 185 put, at $4.75 +23%
• 07:17 | HappyTrading MNST ($47.80) Bought to Open 04P47.5 Apr 48 put, at $1.40 (EXPIRED)
• 06:45 | HappyTrading STX ($35.80) Bought to Open 04C35 Apr 35 calls, at $1.86 (EXPIRED)

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Stocks look a bit tired here. SPX 1600 was yet again denied. However, there were really no big sellers. Commodity sectors were weak today, as the Chinese PMI was lower than expected. This market is so strong, we might not see much of a pullback. As discussed this weekend in my Market Forecast, there’s support between SPX 1560 and 1570. We do have to be a little more careful though, as the market seems to have a hard time pushing through the 1600 mark. We’ll see if the dip-buyers will come in again and try taking SPX 1600 out in the next few days.

We’re not trading much right now, mostly just watching and holding cash. There’s no hurry to trade right now, unless SPX breaks 1600.

Good night and HappyTrading! ™

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What a nice week we’ve had! We traded mostly on the upside as the market bounced. But, we also caught a couple nice trades on the downside as the market consolidate towards the end of the week. 100% of our closed trades were in the GR$$N:

• 11:15 | Ecstatic Plays AAPL ($415.70) Sold to Close 0503C415 May 415 calls, at $6.00 +22%
• 11:44 | HappyTrading SOHU ($50.50) Sold to Close 05C50 May 50 calls, at $2.60 +36%
• 06:53 | Ecstatic Plays PG ($77.85) Sold to Close 05P77.5 May 78 put, at $1.51 +28%
• 11:48 | HappyTrading CELG ($119.70) Sold to Close 05P120 May 120 put, at $4.10 +32%
• 09:52 | Ecstatic Plays PNC ($68.00) Sold to Close 05C67.5 May 68 calls, at $1.41 +57%
• 09:36 | HappyTrading CREE ($57.60) Sold to Close 05C55 May 55 calls, at $3.80 +9%
• 07:11 | Ecstatic Plays WYNN ($131.50) Sold to Close 05C130 May 130 calls, at $4.85 +43%
• 06:54 | HappyTrading HES ($70.10) Sold to Close 05C67.5 May 68 calls, at $3.45 +25%
• 06:44 | HappyTrading HES ($70.00) Sold to Close 05C67.5 May 68 calls, at $3.40 +23%
• 06:37 | HappyTrading BA ($92.40) Sold to Close 05C87.5 May 88 calls, at $5.10 +114%
• 09:50 | Ecstatic Plays WYNN ($129.00) Sold to Close 05C130 May 130 calls, at $3.50 +13%
• 09:34 | HappyTrading CREE ($57.87) Sold to Close 05C55 May 55 calls, at $4.90 +40%
• 07:46 | Ecstatic Plays GOOG ($814.20) Sold to Close 0426C810 Apr 719 calls, at $9.00 +34%
• 12:01 | Ecstatic Plays GOOG ($801.30) Sold to Close 0426C800 Apr 800 calls, at $8.10 +9%

(to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video)

BA provided us with a nice overnight +114% on its earnings. PNC and WYNN were solid trades. GOOG calls were a nice quick intraday play. We are making some good adjustments. We were not trading weekly options much any more. The high-speed programmed trading is making those trades very difficult. So, we are giving ourselves more time on the options, and the results have been very good. Much more patience is needed in the present market environment.

The bulls and bears are fighting it out here in this 50-SPX-point range (1540 to 1590). We have been zig-zagging up and down within this range all month. On Thursday, SPX tested 1590 again, but, still could not break through. More earnings are coming in next week. Friday’s stutter was not very encouraging. We take a closer look at the market on Sunday in my weekly Market Forecast.

Have a great weekend and HappyTrading! ™

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