Wang’s Happy Trading

What a volatile day!! The market opened low and got lower. Then, it suddenly jumped into green, but, was not able to hold it there, and closed in the red! The Dow was down 51.70 points; SPX slid 7.48 points; Nasdaq gave up 15.20 points.

This weekend, in my Market Forecast, I said, “…, 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’.” For instance, GOOG and BIDU, both mentioned in my Sector Watch, made new all-time highs today!

Let’s see how the market closed:

INX2 (Internet) was strong and closed in the green. Most of the other sectors did not do so hot. But, not that bad either. BTK (biotechs) and SOX (semiconductors) both slid 1.25%. GDX (gold miners) and GLD (gold) closed down just slightly. USO (oil) and OIH (oil services) gave up about 1%. FXI (Chinese ADRs) came down big time, a whopping 8.78%!!

SPX

SPX lost 7.48 points to close at 1502.17. It is trying hard not to get “sucked” to the lower daily BB, using it as a support and bouncing off. But, the 20-day MA has just crossed below the 30-day MA. On the other hand, the 10-day MA is flattening and could turn up with any upwards movement. MACD is sliding still. I think it “could” take some time to sort things out. I’d like to see SPX at least above 1520 to feel more comfortable.

Nasdaq

Nasdaq closed at 2795.18 (below 2800), losing 15.2 points. Its daily MAs are still healthy though, but, will need some upwards movements soon to keep them that way.

So, needless to say, I’m still holding lots of cash. It is good to be cautious right now!

IACI had a lot of announcements to make today. It is planning to split itself into “5″ publicly traded companies; and, it has also signed an advertising deal with GOOG that is valued over $3.5 billion! Its stock jumped +7.49% today. MFLX reported 4Q profits that jumped 38% and easily crushed estimates! The superb earnings sent its stock flying up more than +20%!! GOOG unvailed some of its plans to “dial into” the mobile market today with the “Android” system. This news helped propelled its shares to new heights, topping $730 intraday! After the market, FSLR announced a new module supply contract that’s worth about $1 billion. Its shares jumped almost $10 in AH trading!

Good night and HappyTrading! ™