Wang’s Happy Trading

“What a Difference a Day Makes!” If the stock market had theme songs, this should certainly be one of them! (Please come to the blog site if you don’t see the video. You can play it while you’re reading the post!)

Yes, Friday was a day like that! And, today, was even more so! The market opened down, but, turned up, way up!! The Dow closed up +286.87 points; SPX up +34.61; and Nasdaq was up +36.08!

This weekend, I said that the weak sectors are financials (XLF), housing (HGX), oil services (OIH), FXI (Chinese stocks), and metals (XME). These sectors opened down today and continued to slide, dragging the rest of the market down with them. But, I also said that the VIX (volatility index) “may have gotten ahead of itself and may be maxing out.” This morning, on the members board, I said:
happyTrading
Posted August 6, 2007 at 11:06 am | Permalink (Edit)
The market was hitting all those that were still high (PCU/FCX/ACH/BIDU/FWLT/FFIV…etc). But, VIX is so high; not chasing puts right now either.

Soon after that, the market started to turn! Couple of things that I really like about today’s actions is that XLF and BTK bounced big time! XLF closed up +5.12%!! And, BTK added +17.9 points, or +2.39%! As I’ve been saying, we need the financials to start establishing the bottom. The biotechs have been consolidating for a while now, and I’d like to see some of the big money being rotate into them.

SPX

SPX made a big jump today, pretty much erased what had happened on Friday. SPX closed at 1467.67, above the 1440-1460 support range that we’ve been looking at. This is encouraging.

Nasdaq

Nasdaq didn’t recover as much, but still pretty good. It closed at 2547.33, above 2525, the lower end of the support range. I’d feel a lot more comfortable when/if it goes above the 2575-2580 range.

WYNN reported strong results after the market, sending its shares up more than +10%, to above 118, in AH! LVS also benefitted from the news, going up +3.76 points, to almost 103, in AH! Both LVS and WYNN were featured in my post on 7/30, LVS was trading around 86, and WYNN was trading around 100!

Our friend, and contributor, Tradding Goddess, was looking at K over on our blog. I’m finding it very interesting also:
K

K made a new all-time high today, at 54.77! The daily MAs are in a nice bullish formation and the MACD is curving up. This has a lot more room to go up!

Now, it’s all up to the Feds. The market pretty much got itself back to a nice neutral position, waiting to see the results from the FOMC meeting tomorrow. I think I’ll still be exercising caution and patience. We’ve seen what a day can do to change the “feel” and “outlook” of the market. So, I’m still going to be mostly in cash until the market “decides” on a direction.

Good night and HappyTrading ™