Wang’s Happy Trading

Not a bad day, after Friday’s big drop. After all the ups and downs today, the Dow ended up +27.31 points; SPX gained +4.55 points; and Nasdaq lost 5.19 points.

This weekend, I said in my Market Forecast,
“For the new week, the market has gone down quite far in a short amount of time and could see some bounces. The market sentiment right now is not very strong. Unless there are some catalysts (news, events, and such) to change that perspective, any bounces could be seen as chances for people to cash more money out. At the same time, there will be eager people that are looking to ‘bottom-fish’. If SPX 1410 holds, it’ll be very encouraging. The 1440 level now may be seen as the nearest ‘resistance’.”

The market’s actions today reflected the above. It opened up high and immediated traded lower. Then, after the first hour, “bottom fishers” started to come in, driving the market to its day high. But, after lunch, more people cashed out again, taking the market back down. The good thing was that SPX held above 1410, which we’ll look at more closely later.

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

BTK (biotechs) added +2.1%. XLF (financials) managed to close on the green side. USO (oil) lost 2.34% and OIH (oil services) slide 1.55%. GLD (gold) was off just 0.42%, while GDX (gold miners) was down 1.68. PBW (clean energy) fell another 3.06%. MOO (agriculture) was flat. FXI (Chinese ADRs) jumped +2.9%!

SPX

SPX gained +4.55 points to close at 1416.18. It managed to held above 1410, which is a good thing. We’ll need to see some continued upwards movements to feel more comfortable. The MACD and daily MAs continued to slide.

Nasdaq

Nasdaq lost 5.19 points to close at 2499.46. Its MACD and daily MAs dropped lower.

The broader market could be oversold right now. We may begin to see some buyers coming back in tomorrow. But, any bounce will need to hold above 1440 to be substantial.

GOOG traded as low as $637.35 and as high as $662.28 today, a spread of almost $25! I mentioned this weekend in my Sector Watch that many of these high-flyers may have more room to fall. GOOG closed down $7.75, or 1.18%. We’ll need to see these high-flyers start finding bottoms if the broader market were to see sustainable strength. There are speculations that IBN may be planning an IPO in its investment banking unit. Its shares jumped +9.81%! HWAY may benefit from a lower key rate affecting Medicare Health Support program. One analyst said that the rate change could mean as much as 25 cents/share more profit for the company. HWAY shares flew up +10.31%! BCR shares reached a new ATH of $95.90 today, after an upgrade to “Outperform”.

Good night and HappyTrading! ™