Wang’s Happy Trading

What a crazy, but fun, week it was! On Monday, the market was solid, and, we locked in profits from the Chinese ADRs. On Tuesday, the market was cautious ahead of the Fed meeting. On Wednesday, the Fed announced another quarter-point percentage cut in the federal funds rate, and the market flew up! We proceeded to lock in more gains. On Thursday, the market completely reversed Wednesday’s gain as unfavorable comments from some analysts on C rekindled worries in the financial sector. On Friday, the market seemed to have calmed some of its nerves and managed to close in the green.

Let’s see how the market closed on Friday:

INX2 (Internet), SOX (semiconductors), BTK (biotechs), and SWH (software) were all solid, giving the techs some good gains. GDX (gold miners), XME (metals and mining), and GLD (gold) were very strong adding +3.87%, +1.30%, and +2.44%, respectively. USO (oil) and OIH (oil services) also found lots of buyers!

SPX

SPX added just +1.21 points to close at 1509.65. It didn’t look very healthy after Thursday, but, managed to stop the bleeding on Friday. It is nice to see that the 10-day MA is flattening out. We’ll need to see SPX above the daily MAs to be more comfortable.

Nasdaq

Nasdaq added +15.55 points to close at 2810.38. The techs are in a much better shape than the overall market. It is very encouraging to see the 10-day MA perk up above the 20-day MA.

For the new week, I’m looking for the techs to continue to lead the market. SPX will need to at least get above 1520 to be in the neutral ground, and, it looks like it is in a good position to do so early in the week. But, given that SPX’s daily MAs are crossing each other, we’ll probably still see some volatility in the broader market. It is more of a “stock picking” market environment, or at least “sector picking”.

This will lead us into tomorrow’s topics. I’ll be back with my Sector Watch to look at some interesting sectors.

Hope you’re enjoying your weekend!

Good night and HappyTrading! ™