Wang’s Happy Trading

The market was pretty uneventful today. Well, actually, it was volatile! But, if you’re keeping cash and not doing much when the market is unstable, like I am, it becomes “uneventful”. We closed only one trade today, on NOV, for a +32% gain:

NOV Sept 120 calls, NOVID, at $4.5, +32%

But, it does feel like there are some solid buyers in NOV today. The company announced a 2-for-1 stock split yesterday.

Here’s how the market closed:

Most sectors were flat or a little bit on the weak side. OIH was strong though, gaining more than +3 points. It certainly felt like the bulls and the bears are fighting it out today. It was kind of like watching a “Rocky” movie; one side hits for 5 minutes, then, the other side hits for 5 minutes, back-and-forth.

But, in the end, the market held its levels.

SPX

SPX closed above its 20-day MA today, giving up just 1.57 points. MACD is still rising.

Nasdaq

Nasdaq was a little weaker today, but, also managed to close above its 20-day MA. What we want to see now is for both SPX and Nasdaq to go above their respective 30-day MAs.

GME reported great earnings today, which gave its shares a new all-time high of $48.86. GME closed at $47.45, rising more than +9%! MRVL reported a 2Q loss after the market, sending its shares down 8.68%! GPS’s 2Q profit rose. The company boosted its forecast for 2007 and announced an additional $1.5 billion stock buyback! GPS shares were trading +2.5% higher in AH.

I think we did pretty well by cashing out a lot of profits since last Friday. Now, we have even more cash than we did before. Cash is still king in volatile markets, although I do consider today’s market actions pretty bullish, holding its levels. After 4 consecutive days of gains, a little profit-taking is good. This weekend, in my market forecast, I said, “If the financial sector stays strong, I’m looking for a positive open next week, continuing this week’s late actions. In the mid-week, we might see some oscillations as people might want to take some profits.”

Now, we’ll have to see if the market can continue to rise towards the 30-day MAs. For Nasdaq, it’s about 2580; and, for SPX, it’s about 1480.

Good night and HappyTrading! ™