Wang’s Happy Trading

The market was quiet today, kind suppressed (almost artificially). The major indices did close in the green, though. The Dow finished up +57.88 points; SPX gained +6.26 points; Nasdaq went up +8.37 points. But, from the sector performances, one would almost think that the major indices should have been higher!

The biotechs (BTK) were strong today, closing above 800! The biotechs stocks (DNA, AMGN, ONXX, CELG) that I mentioned in my weekend forecast are all doing well this week. Money is definitely rotating back into this sector. The semicoductors (SOX) and internet stocks (INX2) did pretty well too. But, the big story today was “gold”! Gold closed above 700 today. GLD (gold) and GDX (gold miners) both closed up big, with GDX gaining more than +6%!

SPX

SPX closed just under 1480, at 1478.55. SPX tested the 10-day MA again today, and again, it bounced back. This is a good sign. We see that the 10-day MA continues to rise and it is already above the 30-day MA. But, I’d feel more comfortable if the 20-day MA also crosses above the 30-day MA, giving us the bullish formation. Also, when that happens, I think SPX should be above this 1480 level.

Nasdaq

Nasdaq is staying strong as the biotechs, semiconductors, and Internets are all rising. Similar story, though, I’d still like to see the 20-day MA crossing above the 30-day MA to feel more comfortable.

RTP jumped almost +16 points on takeover rumors. This also helped other metals and mining stocks, as XME gained +2.28%! NSM posted better-than-expected earnings, but, its shares slid $0.7 in AH trading. TASR gained more than +3% today as it received more orders from California Highway Patrol.

Good night and HappyTrading! ™

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