Wang’s Happy Trading

The day started high, as GS reported solid earnings with $3.17 billion in profits (although GS ended down 3.41%). The market waves were still choppy. It wasn’t until the market tested the next support level did the big buyers come in. In the early afternoon, the market finally turned the corner and continued up to the close. The Dow added +65.27 points; SPX was up +9.08 points; Nasdaq gained +21.57 points.

Let’s see how the market looked at the close:

INX2 (Internet), SOX (semiconductors), BTK (biotechs), and SWH (software) all closed green. GLD (gold), GDX (gold miners), and XME (metals and mining) added +1.43%, +2.04%, and +0.7%, respectively. USO (oil) was down, although OIH (oil services) and UNG (natural gas) made some gains. XLF (financials) and HGX (housing) were flat to slightly green. FXI (Chinese ADRs) jumped +5.66%. PBW (clean energy) continued to show strength. advancing +3.79%.

SPX

SPX added +9.08 points to close at 1454.98. It tested the support at 1440 and bounced up nicely. Its 20-day MA is about to cross above the 30-day MA; this is a good sign. To make the picture more bullish, we’d still need to see the 30-day MA turn up, which would perhaps need a few more solid up days.

Nasdaq

Nasdaq gained +21.57 points to close at 2596.03. It also tested its support level, at 2550, and bounced up. Nasdaq can be explosive and its daily MAs are all pretty close together, within 50 points. Clearing above the daily MAs would make this picture more bullish.

The recent volatility on the market has made many investors/traders anxious. The “turn-around” today was encouraging, and we managed to have a pretty good day, trading in-and-out of fast movers such as GOOG and BIDU. Click here to see some “actions” from the member site.

This morning, BBY reported solid earnings. Its stock traded initially down, but, did manage to close with a small gain, almost +1%. IRBT jumped out of the gate today as it announced a new deal with U.S. Army. Its shares traded as high as $19.5 from yesterday’s close of $17.19. However, it closed at $17.88, up only $0.69, or +4.01%. WFR, STP, and JASO received price target lifts today from Lehman analysts. WFR shares gained +3.67%; STP traded lower by 0.48%; JASO jumped +4.82% (mentioned yesterday).

Good night and HappyTrading! ™