Today, SPX managed to close just above 2000! Biotechs continue to attract investors as they speculate on what/when the next merger is! Over the weekend, Roche announced a $8.3 billion deal to buy ITMN, or at $74/share a 38% over Friday’s closing price! Biotech stocks have been really strong this week, pushing the biotech index to above 3100. IBB, the Nasdaq biotech ETF, vaulted to a new all-time high! AMGN and GILD have been on fire!! BIIB has been kind of quiet and could see a new breakout soon! I also like VRTX, MDVN, LLY, INCY, and ILMN. VRTX looks especially good!
We locked in profits from some nice trades in the past 2 days, including a +131% gain from CLVS Sept calls (Our "Ecstatic Plays" have been doing exceptionally well lately!), and an overnight +61% win from AMZN Sept calls. JKS Sept 27 calls was a patient play, even though JKS took a quick fall after earnings:
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The Dow was up +29.83 points; SPX added +2.1 points; Nasdaq gained +13.29 points:
BTK (biotech) continued to lead the sectors. FDN (internet) was strong as well. XME (metals and mining) was up +1.69%.
SPX gained +2.1 points to close at 2000.02, just above 2000.
Nasdaq added +13.29 points to close at 4570.64. Its daily MAs and MACD moved higher.
Stocks are really strong! With SPX at 2000, things can probably use a pause. With both SPX and the Dow at new all-time highs, it begs the question, "Will Nasdaq revisit 5000, the high set back in year 2000?" I think it’s very likely. Biotech stocks have been pushing higher and higher. AAPL is at a new all-time high and is preparing to release new products. Semiconductors are at their highest levels in more than a decade. Internet stocks are still strong as social networking stocks attract more investors; and, these companies are really making money, unlike the ones during the internet boom back in 2000. TWTR has made a new all-time high. YELP is on the rise again, after the recent drop from false earnings reaction. LNKD and NFLX both are looking to go higher. GOOG and PCLN are lagging a bit this week, but, still strong. FB is about to break out again!
We’ll certainly be watching these stocks as we had just scored a nice trade on AMZN! With biotechs, it may be interesting to trade IBB, as options are moving quite well. From the looks of it, biotechs could continue to go higher!
Good night and HappyTrading! ™