Wang’s Happy Trading

The week turned out to be a pretty good one. For the week, the Dow gained +110.8 points for the week; SPX added +16.51 points; and, Nasdaq jumped +56.25 points.

Last weekend, I said, “The market is in a critical condition. For the new week, we’ll be watching to see if the 20-day MA (cyan line) can hold. To feel more bullish, we’ll need to see the 30-day MA (black line) turn up, which would probably take a rally of a few consecutive days. If the market can’t hold the 20-day MA, we might be looking for some downside plays.” The market indeed rallied “a few consecutive” days, closed above the daily MAs, and the 30-day MA started to turn up.

On Monday, the market was weak and could not hold the 20-day MA. We made some quickly plays on the “puts” side, but, did not hold them overnight. On Tuesday, the market tested its support levels and bounced back, as I said in the morning on the member board,
“HappyTrading
Posted December 18, 2007 at 7:34 am | Permalink (Edit)
market
seems like they are shaking the last weak holders. There are buyers; but, the bigger names are being pressed. We’ll have to see what happens later.”

We made some nice trades on GOOG and BIDU, among others. On Wednesday, the market was flat, and we held our call positions in place. On Thursday, the techs jumped, as I said in the morning,
“HappyTrading
Posted December 20, 2007 at 7:13 am | Permalink (Edit)
GOOG
I think we can see $690 soon; breaking $690, it can go test $720,” and
“HappyTrading
Posted December 20, 2007 at 10:05 am | Permalink (Edit)
Market
I think the whole market is just waiting to make the turn. Let’s see if it can push through.”

The market pushed higher in the afternoon and GOOG traded as high as $691 on Thursday. On Friday, the market continued its rally, in a big way; and, we wrapped up a pretty solid week.

Let’s take a look at how the market closed on Friday:

Wow! ALL GR$$NS, at least the sectors that we track!! INX2 (Internet) and SWH (software) were strong, with +1.69% and +1.63% gains, respectively. GLD (gold) added +1.82%; GDX (gold miners) shot up almost +5%; and, XME (metals and mining) garnered +2.93%. USO (oil) and OIH (oil services) displayed strength also, with +2.36% and +3.52% advances, respectively. HGX (housing) went up +2.68% and XLF (financials) gained +1.84%. FXI (Chinese ADRs) was up +3.09%. PBW (clean energy) continued with its upwards momentum, going up another +3.52%. Our new ETF, MOO (agriculture) also advanced +2.91%.

SPX

SPX gained 24.34 points to close at 1484.46. It closed above its daily MAs and the 30-day MA started to turn. The MACD also went up.

Nasdaq

Nasdaq jumped +51.13 points to close at 2691.99. It also closed above its daily MAs. Its 30-day MA is starting to turn. Its MACD jumped to positive!

The market is looking much more healthier!! For the new week, the market is in a good position to go higher. There might be some volatility early in the week as some of the options expiration manuevers linger on. The market may need to vent a little. If the market manages to let off some steam without losing much altitude (staying above the daily MAs is the key), the market could set itself up to catch the daily upper BB. Having the 30-day MA completely turned up would also a bullish sign.

It’s almost Christmas. I’m going to try to take a few days off. We’ll have some guest bloggers here in the next few days. Optiondragon has already posted a “colorful”, educational, and interesting article. Thanks, dragon!! Please also see his article for some interesting sector plays.

Hopy you all have a very Merry Christmas and Happy Holidays!! I’ll most likely “see” you after the 25th!

Good night and HappyTrading! ™