Wang’s Happy Trading

Yikes! The market has fallen and it can’t get up! It was doing pretty well for most of the day, until the last hour-and-a-half. The Dow finished down 238.42 points; SPX tumbled 25.99 points; and the Nasdaq fell 58.95 points!!

Yesterday, I said,
“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.”

and, this weekend, I said,
“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”.”

Well, we saw buyers coming in today, driving popular stocks such as GOOG, AAPL, BIDU, RIMM, and AMZN green for good parts of the day (all but BIDU closed in the red). But, SPX could not get even close to 1440. 1430.28 was the day high. In the late afternoon, another strong wave of selling continued the market slide ’til the close.

Here are how things looked:

VIX jumped another +6.89%! Gold and oil are still pretty solid. GLD (gold), GDX (gold miners), and USO (oil) all went up. Most other sectors were in the red. INX2 (Internets), SWH (software), and SOX (semiconductors) all lost more the 2%. HGX (housing) “caved in” another 4.36% while XLF continued its fall by another 3.64%. PBW (cleaning energy) stumbled 1.79%; even MOO (agriculture) was in the red by 2.17%!

SPX

SPX lost almost 26 points to close at 1390.19. It closed below the support at 1410 and below its November low. Its daily MAs are starting to enter into a new bearish formation, with 10- below the 20- below the 30-day MA. The MACD also continued to slide. The next support level (not shown here) is 1375, set in March 2007 and tested in August 2007.

Nasdaq

Nasdaq lost almost 60 points to close at 2440.51. It closed below its support at 2450. Its daily MAs also entered a new bearish formation with the MACD falling. Its next support is at 2400, set in March 2007 and tested in August 2007.

The market conditions are just horrible! I’m holding mostly cash with some long positions in gold and short plays on GOOG.

Today, the market saw renewed pressure in the housing and financial sectors as rumors of CFC filing for bankruptcy stirred. CFC shares was down 28.40%!! The market was also spooked by T, who professed seeing softness in its consumer business. T shares fell 4.56%. LLY received approval from FDA to offer its erectile dysfunction drug, Cialis, in a new daily dose. Its shares bucked the market trend and ascended +2.77%. After the market, APOL announced a strong 1st-Quarter profit. Its shares jumped +8.21% in AH trading.

Good night and HappyTrading! ™