Wang’s Happy Trading

Another very volatile day! VIX closed at 23.52, up 12.7%! I think Phil said it well this morning, “It’s shaping up to be another interesting day and we’ll have to be fast on our feet but I STILL urge caution and patience.” The day started with things flying, but, ended at day’s low! It is still good to hold cash!!

Let’s take a look at a snapshot of how the market closed today:

Pretty much a broad market reversal, sparked, again, by housing/credit worries (see news on AHM). XLF (financial sector) was down another -3.18% and GS closed below 190, reversing a high of 198.99 early in the day!

SPX

SPX fell back to its support range (1440-1460). The difference between the MACD and its signal is now greater than 10! When this difference gets big, it is often a signal for some relief rally, as we can compare our present situation to what happened in Feb-Mar. But, still, being cautious and patient while holding cash is perhaps the smarter move.

Nasdaq

Nasdaq shows a similar picture. However, it did close “below” its support range (2550-2575). If 2550 doesn’t hold, we’ll have to look at 2525 for support, which was the Feb high.

After the market, WFMI’s earnings beat the estimates and saw its shares jump over +8.5%! FSLR also delivered good earnings, but, perhpas wasn’t enough to keep up with the high expectations from the investors. Its shares were down almost 10 points!

Good night and HappyTrading! ™

ps. We’re still ironing out some technical issues for the “private” site. So, please stay tuned!