Wang’s Happy Trading

The Dow rose +145.27 points; SPX added +16.95 points; and the Nasdaq gained +31.5 points! WOOHOO!!! Yesterday, I said, “I think if/when SPX and Nasdaq both rise above their 10-day MAs, we’ll see more buyers coming in!” And, they are coming out from everywhere!

Check out this map of the market:

Noticed that the “basic materials” (metals) have the “greenest” patches today. People were buying up metals and mining stocks as BHP reported strong earnings this morning! XME also jumped +3.27%!

Semiconductors (SOX), biotechs (BTK), and the Internet sector (INX2) were all strong today. Oil (USO) and natural gas (UNG) were weak, but, oil services (OIH) added more than +3 points! Housing (HGX) and financials (XLF) both gained. Good sign! A the winner is: Chinese stocks (FXI), gaining a whopping +7%!!

SPX

SPX closed above its 20-day MA today. Its MACD continues to rise and the MACD difference is now positive!

Nasdaq

Nasdaq also jumped above its 20-day MA, and, its MACD difference is also positive.

After the market, CFC jumped more than +22%, as BAC is looking to invest $2 billion in the company. The financial sector jumped in after-hours trading on the news! BCSI today reported exceptional earnings and announced a 2-for-1 stock split, sending its shares up more than +29%, and, it seems to be still rising in AH. MGM rose almost +9% today after it announced a $5 billion investment from Dubai.

As mentioned earlier, we had another good day! AAPL, GOOG, POT, and PCP, all gave us good profits. Between 12-1pm today, the market became a bit unstable.

I cashed out the AAPL Sept 125 calls at +52% profit, and said on the members’ board:
HappyTrading
Posted August 22, 2007 at 9:37 am | Permalink (Edit)
AAPL
cashed rest out. +52%

market a little unstable. Locking in some profits. Both SPX and Nasdaq are above 10-day MA. So, don’t panic.

When someone asked for the support levels for the market:
Posted August 22, 2007 at 9:41 am | Permalink (Edit)
Happy: Could you list the support levels for SPX & Nasdaq?

I replied,
HappyTrading
Posted August 22, 2007 at 9:49 am | Permalink (Edit)
SPX & Nasdaq
I’m actually looking at resistance. Both indices have risen above their 10-day MAs, and are now negotiating with their 20-day MAs.

When the market conditions are unstable, it doesn’t hurt to lock in some profits, even if things go higher later. Cash is king! Holding cash allows one to be flexible. Sure enough, the market came back to close at the day’s high! As stated earlier, the market closed above the 20-day MA. With the financial sector gaining in AH, the market could go for the 30-day MA tomorrow. We can decided whether we want to go back into some of these stocks that we cashed out today, or, maybe there are other new opportunities!

Good night and HappyTrading! ™