Wang's Happy Trading

Yesterday, in my evening post, I said of SPX, “We’ll need to see some upwards movements soon to start turning the 20-day MA,” and of Nasdaq, “We’ll need to see Nasdaq close above the 20-day MA to feel more bullish.” Well, the market responded with both of those signals today (will discuss more later). The Dow closed up almost +200 points; SPX gained +22.22 points; and Nasdaq jumped +46.53 points.

Here’s how the market closed:

INX2 (Internet), SOX (Semiconductors), BTK (biotechs), and SWH (software) were all strong, adding +1.8%, +2.45%(!!), +0.81%, and +2.57%(!!). GLD (gold) and USO (oil) lost some grounds. But, XME (metals and mining) and OIH (oil services) gained! XLF (financials) came back up +1.49%. FXI (Chinese ADRs) jumped +5.92%!

SPX

SPX added +22.22 points to close at 1485.01, above its 30-day MA! This is a very good development! Its MACD has also resumed upwards. This weekend, in my Market Forecast, I pointed out the resistance range above the 30-day MA, which is 1500-1520. We’ll start watching that range. Also, we’ll need to see the 20-day MA start turning up.

Nasdaq

Nasdaq jumped +46.53 points to close at 2666.36. It closed above its 20-day MA. Another good sign. Its MACD also went up. Let’s see if Nasdaq can continue to go above the 30-day MA.

This weekend, in my Sector Watch, I talked about the Chinese ADRs, collectively represented by FXI, which as mentioned above gained almost +6% today. I said, “Many Chinese ADRs have come down quite a bit from their highs. They’ve started to bounce with the market and we’ve seen how fast they can run. So, I’ll be keeping an eye on these.” Many of these stocks made “very healthy” gains today:

CHNR +88.28%!! (+$14.77)
EFUT +22.35% (+$3.78)
EDU +1.86% (+$1.59; traded as high as $91.77 and has climbed continuously for about 2 weeks now from a low of $62.32, a gain of almost $30!!)
PTR +6.47% (+$12.27)
CEO +4.39% (+$4.39)
SNP +7.25% (+$10.76)
CHL +5.44% (+$4.95)
LFC +4.2% (+$3.49)
CHA +6.09% (+4.93)
CMED +4.51% (+1.9)

We took some profits on PTR and CHL today (still hold partial positions on both) and entered a new position in CMED.

Good night and HappyTrading! ™