Wang’s Happy Trading

Wow! Talking about volatility!! The Dow went down 360.92 points; SPX dropped 44.65 points; and Nasdaq lost 76.42 points! With this huge “see-saw action in the market, for me, it is good to keep lots of cash!!

In my Market Forecast this weekend, I said, “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’.” The first part, about SPX going to 1520, we saw yesterday. The second part, about the volatility and stock/sector picking, we are seeing today and probably for most of the remaining week!

This is why I picked up VIX calls on Monday, which did very well for us today, as VIX jumped +23.84%!! The sector that I picked is the alternative energy sector, or mainly “solar” plays. I talked about SPWR and FSLR, plus, the Chinese solar plays yesterday. (see Happy Trades!! for more details)

Today, on the members board, I talked about FSLR:
HappyTrading
Posted November 7, 2007 at 8:28 am | Permalink (Edit)
FSLR
check out Dec 170s; stock is about flat and these options are up $1.8! Does someone (else) think that it’s going to go higher (perhaps by a lot)?

HappyTrading
Posted November 7, 2007 at 9:14 am | Permalink (Edit)
FSLR
I bought Dec 170s at $17.3 yesterday. But, earnings are always a bit of a gamble; so, I’ll keep this one as an unpublished play.

HappyTrading
Posted November 7, 2007 at 10:40 am | Permalink (Edit)
FSLR
take a look at the volume yesterday. HUGE!! while nothing is for sure, that volume is a good indication.

After the market, FSLR jumped almost $40, or over +23%!! (more on this later) Those options that I bought yesterday closed at $17.1, just below where I got them. But, with this AH “blessing”, I think they will do very well tomorrow (perhaps 100-200% profit)! This is why there’s added value in being an active “Happy” member!! So, many of the great ideas happen just in the conversations with other members!

Let’s see how the market closed:

Pretty much red across the board. GLD (gold) went up again by almost +1%. INX2 (Internet), SOX (semiconductors), BTK (biotechs), and SWH (software) all lost over 2%. USO (oil) and OIH (oil services) gave back the gains made yesterday. GDX (gold miners) and XME (metals and miners) were also on the weak side. FXI (Chinese ADRs) lost another 4.77%!

SPX

SPX was down 44.65 points and closed at 1475.62. It has caught its daily lower BB and its daily MAs are in a bearish formation! MACD is also sliding.

Nasdaq

Nasdaq lost 76.42 points to close at 2748.76, below its daily MAs. Its MACD dropped lower.

This is definitely time to be cautious. I’m still holding lots of cash and might be even looking to play some quick daytrade puts tomorrow!

This morning, RIMM received a new $180 price target. Its stock jumped as high as $137.01, from yesterday’s close of $131.04. But, it gave back some gains as the rest of the market slid, and closed at $133.03. It is down in AH, trading at $131.06! After the market, CSCO reported good earnings, but, not quite good enough for the investors. Its shares dropped almost 9% in AH! CTRP reported solid earnings and saw its shares rise +4.64% in AH. FSLR, mentioned earlier, announced stellar quarterly results, earning 58 cents per share, which easily beat the average estimate of 19 cents per share! Its shares jumped almost $40, or +23.56% in AH trading!!

Good night and HappyTrading! ™