Wang’s Happy Trading

It was an ugly day on the market. House prices fell and consumer confidence was lower. The market started down and continued to bleed until the close. SPX dropped 34.43 points; Nasdaq lost more than 60; and the Dow gave up more than 280 points!! VIX jumped 15.76%!

We did pretty well, though, considering the market conditions:

ACH OCT 65 calls, ACHJM, at $10, +33.3%
BIDU Sept 210 calls, BDUIB, at $11.2, +27.3%
PCU Sept 100 puts, PCUUT, at $4.8, +4%
SPWR Sept 65 calls, QSUIM, at $1.35, -68.6%

We cashed out most of the Chinese ADR calls early this morning. I picked up some PCU puts but didn’t stick with, which in retrospect, should have. I also decided to cut the loss on SPWR. The solar sector has been weak and SPWR broke the support at $62.7 yesterday and continued to slide today. From the profits that we’ve been taking since the bounce, we have a even bigger cash position now. I will continue to do shorter-term trades and take quick profits in this volatile market, until the market direction is clear. So, once again, cash is king!

Here’s how the market closed:

The housing sector (HGX) continues to go lower, down another 4.57%. The natural gas sector (UNG) has been trading opposite to how the broader market moves lately, finishing in the green by almost +4%! The Chinese ADRs (FXI) finally let off some steam, down 8%. The financial sector was again weak, losing almost 3%.

SPX

SPX pierced through both 20- and 10-day MAs, closing below its 1440 support. This is not a healthy sign, of course. The broader market could be looking to test that 1400 support.

Nasdaq

Nasdaq also closed below its daily MAs. It does have that 2575 as its nearest support.

After the market, STX raised its Q1 outlook, sending its stock up more the +5% in AH trading! NCTY posted lower Q2 profit, and its stock is down more than 13%! Lone Star Funds announced that it extended its tender offer to purchase LEND to 9/12. LEND’s shares were up +8.9% in AH, trading at $6.36. The agreed price for Lone Star’s purchase is $15.10. BA announced a big NASA contract win. BA shares were slightly up in AH.

Good night and HappyTrading! ™

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