Wang’s Happy Trading

IT’S A BEAUTIFUL DAY!! (please come to the blog site to see the video from U2)

The Dow ended up +247.44 points; SPX gained +31.4 points; and the Nasdaq got back every point it lost yesterday, and more, adding +62.52 points!!

The “color code” is the complete reverse from yesterday. Everything is GR$$N, except for the natural gas sector (UNG), which keeps on going the opposite way as the broader market. VIX went back down, a good thing. The gold miners (GDX) jumped +3.5%, so did the oil services (OIH)! The semiconductors managed a good gain of +13.26 points. The Chinese stocks (FXI) again stole the show with a +5.25% jump!

I’ve started a new daily post, tracking the financial sector ETF, XLF (on the member site only; got to give my members some additional attention). As I have been saying for over a month, I think we need to see the financial sector establishing a bottom in order for the broader market to stabilize and recover. Yesterday, I posted this:

I thought XLF would hold 33 yesterday because the 10-day MA was going up pretty sharply and was about to cross the 30-day MA. It tested 33 twice today and bounced back. This was good for the overall market, but, I think today’s market strength has something much bigger behind it. Could it be just bargain hunting, or perhaps something else? I guess we will see.

SPX

SPX closed at 1463.76, just below its 30-day MA. The MACD is rising again. I think it might have enough strength to go above the 30-day MA this time.

Nasdaq

Nasdaq jumped +2.5% to close at 2563.16 and is challenging its 30-day MA. Its 10-day MA is looking to cross the 20-day MA and the MACD is rising again. Suddenly, we have some pretty bullish pictures!

After the market, SIGM jumped almost +15%, on top of the +3.7% during the day!! To say that they’ve had a good quarter is an understatement. The company made $8.6 million comparing to $216,000 a year ago! NOVL reported favorable earnings and its shares were up slightly. MO announced plans to spin off its Philip Morris International cigarette business. Its shares were unchanged after the market.

With today’s market strength, I started allocating a little more of my cash position into the market and make them work. We had some pretty good cheers on the members’ board:

Let’s see if the market can overtake the 30-day MA tomorrow!

Good night and HappyTrading! ™

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