Wang’s Happy Trading

Wow, another exciting day!! What volatility!! I’ll repeat what I posted yesterday here again: “In my Market Forecast this weekend, I said, ‘[w]e may see some volatility, though, as some people might be looking to lock in profits.’ I also said that ‘….it might be healthy to see the market let off some steam mid to late week. We’ll have to see if the market can manage to vent without losing altitude like this week.’”

This morning, this market charged up to new heights. SPX was as high as 1576.09; the Dow almost touched 14200; and, Nasdaq was at 2834! After lunch, profit-taking started to increase, and, the market turned downward sharply. The intraday bounces were also sharp and quick, increasing the volatility. VIX was up +13.26% today!! The Dow closed at 14015.12, above 14000, and only down 63.57. SPX was only down 8.06 points. Nasdaq, which has been running up so much recently, was down 39.41 points.

In the “Happy Trading” community, we still did pretty well, as we locked in profits earlier in the day:
TSL Oct 60 calls, TSLJL, at $2.9, +3.57% (partially out)
IBM Oct 115 calls, IBMJC, at $5.8, +5.45% (partially out)
IBM Oct 115 calls, IBMJC, at $6.1, +10.9% (all out)
MA Nov 165 calls, MALKM, at $12, +14.3% (partially out)
TSL Oct 60 calls, TSLJL, at $3.5, +25% (all out)
HMIN Dec 35 calls, QHHLG, at $5, +19%
PPG Nov 75 calls, PPGKO, at $4.8, +37.1% (all out)
MA Nov 165 calls, MALKM, at $11.5, +9.5% (all out)

The members seem to be doing quite well, and, becoming more confident, regardless of what the market conditions are. We hit a new record for number of comments made during the day! 778 comments!

Here are what some members are saying at the end of the day:
MikeI
Posted October 11, 2007 at 12:56 pm | Permalink (Edit)
great advice yesterday happy, I’m sitting in cash letting trades come to me right now.

tdbct
Posted October 11, 2007 at 12:00 pm | Permalink (Edit)
Excellent call on the late week sell off Happy!

Makemoney
Posted October 11, 2007 at 12:56 pm | Permalink (Edit)
I personally will remain in all cash tonight. Don’t know how China will react tonight and ppi out tomorrow. GOOG temps me, but maybe will wait it out.

Bob
Posted October 11, 2007 at 1:03 pm | Permalink (Edit)
Lessons learned today…
Taking profits on the way up helps more than you think.

RankXerox
Posted October 11, 2007 at 1:05 pm | Permalink (Edit)
I have mostly cash covered today positions with small offset and 2 jans postions… and rigth now I’m goona watch the NBA EUrope Tour “Raptos VS Real Madrid”

sdjerry
Posted October 11, 2007 at 1:08 pm | Permalink (Edit)
Good night all!!! Another great day… and now cheaper option prices

Conceivable
Posted October 11, 2007 at 1:12 pm | Permalink (Edit)
Wow, the damage is not as bad after all that thanks to cashing out a lot this morning and along the way the past few days, keeping each play small. Happy’s right of course: take profits along the way, keep a hefty stash of cash. Keep reminding us of that Happy! Thanks as always! It was a real learning experience today.

Luck -o- the Irish
Posted October 11, 2007 at 1:20 pm | Permalink (Edit)
today is one of those days that demonstrates why you don’t force a trade. Opportunities will be there, and if they are not, they will come to you, if you wait. It’s a marathon, not a sprint.

Happy, you did an awesome job today. Dragon…you as well. You can each give yourselves a pat on the back from me. Trading can be lonely at times, and you both, as well as the community, make it very enjoyable.

Thanks and nicely done, everyone!

Let’s take a look at how various sectors did:

People really took some good profits off the table on the techs: INX2 (Internets) was down 2.08%; SOX (semiconductors) was down 2.26%; and BTK (biotechs) lost 1.39%!! Commodities (and related sectors) faired better: GLD (gold) was up +0.75%; GDX (gold miners) closed on the green side; OIH (oil services), which traded as high as $204.14, gained 0.50%. FXI (Chinese ADRs) managed to close with a tiny gain.

SPX

SPX recorded a new high, albeit intraday, of 1576.09. It ended the day down only 8.06 points. It tested the 10-day MA and bounced back. Its MACD continues to level, but, the daily MAs are still healthy.

Nasdaq

Nasdaq shows a similar pattern. It made an intraday, multi-year, high of 2834, but, closed down 39.41, at 2772.20. On the top, it touched its daily upper BB, and on the bottom, tested its 10-day MA. MACD is leveling a bit, but, the daily MAs remain strong.

After the market, ATI lowered its full-year guidance. Its shares were trading down more than 10% in AH trading! ERTS announced plans to buy BioWare and Pandemic Studios, two separate game makers. Its shares were last traded up +1.38% in AH. BIDU today finally let out some air!! It traded at almost $360 per share, but, closed at $308.78, down $34.39!! It continued to trade lower in AH; last traded at $302.50, down another $6.28! GOOG received more target boosts today, and recorded a new, intraday, high of $641.41!! There was also more news about Google phones. But, GOOG shares also closed lower with the market today, at $622. It last traded at $618.65 in AH, down another $3.35.

We have lots of cash accumulated over this week (see Happy Trades!! for more details). We’ll see how the market is tomorrow and allow opportunities to present themselves.

Good night and HappyTrading! ™