Wang’s Happy Trading

Surprise, surprise! Another volatile day. But, the market stayed in the red all day, starting the day with weakness in the financial sector, as analysts downgraded the investment banks. The Dow slid 65.84 points; SPX gave up 9.63 points; Nasdaq went down 17.3 points.

Here’s how the market closed:

INX2 (Internet), BTK (biotechs), and SOX (semiconductors) were slightly on the weak side, while SWH (software) closed slightly green. GLD (gold) went up +1.43%, but, GDX (gold miners) and XME (metals and mining) did not share the same strength. USO (oil) and OIH (oil service) gave back yesterday’s gains. XLF (financials), as mentioned before, was weak right from the start of the day. FXI (Chinese ADRs), however, went up by +1.26%.

SPX

SPX closed at 1462.79, down 9.63 points. It managed to stay above the 20-day MA. The 10-day MA continued to rise and the MACD flattened a bit. We’ll need to see some upwards movements soon to start turning the 20-day MA.

Nasdaq

Nasdaq slid 17.3 points to close at 2619.83, below the 2625 support level. It did manage to stay above the 10-day MA, which moved up. We’ll need to see Nasdaq close above the 20-day MA to feel more bullish.

The market has been very volatile these past couple of days. While the movements have not been very big, they have been going up-and-down frequently and quickly, intraday. The market is trying to negotiate with the daily MAs as investors position themselves before next week’s Fed meeting. We have not been making too many trades and are still holding cash and waiting for better opportunities to present themselves.

Today among the solar stocks, there were some pretty big movers! FSLR stumbled 6.4% after its meeting with the analysts. Its stock has risen quite a bit in the past month, from around $160 to above $250! Since there were no major news coming out of its first analyst meeting, the investors might have taken the opportunity to lock in some profits. SPWR traded as high as $133.11 and as low as $124.56, almost a 10-point spread. We took the opportunity to lock in some profits on an intraday spike. STP traded down almost 5%, while TSL jumped +8.2%. SOLF announced a private investment from Good Energies, taking a 34.7% stake in the company. Its stock jumped $5.65, or +27.43%, and traded as high as $29.25! SOLF was trading around $11 last Wednesday (11/28), almost a +200% move in 4 trading days!! LDK added $8.67, or +26.84%, and traded as high as $42.75! LDK traded above $75 back at the end of September!

Good night and HappyTrading! ™