Wang’s Happy Trading

Well, the market finally bounced! Like in the movie “Bounce”, after some terrible things (such as a crash), good things can come. This is why, sometimes, it is rewarding to just wait and hold cash, until the opportunities present themselves. The Dow closed up +146.24 points; SPX added +18.94 points; and the Nasdaq gained +34.04 points.

Yesterday, I pointed out the next support levels of both SPX and Nasdaq, where were 1375 and 2400, respectively. Today, SPX’s low was 1378.7 and that of the Nasdaq was 2407.39. In the afternoon, as things started to move up, I said (time stamps are in PST, US West Coast Time),
HappyTrading
Posted January 9, 2008 at 11:36 am | Permalink (Edit)
SPX/Nasdaq day lows:
1378.7/2407.39; are the big boys saying those are close enough?!

I also started naming some bullish plays:
HappyTrading
Posted January 9, 2008 at 11:26 am | Permalink (Edit)
CF
has been very strong through all the volatility; when market bounces this thing should fly!
which was down more than $4 at one point, but, closed up $3.73!

HappyTrading
Posted January 9, 2008 at 11:38 am | Permalink (Edit)
CEO
check the charts on this. Looks pretty good.
which closed up +8.18%

HappyTrading
Posted January 9, 2008 at 11:43 am | Permalink (Edit)
DECK
another good “bounce” candidate.
which closed up +6.77%

HappyTrading
Posted January 9, 2008 at 11:45 am | Permalink (Edit)
JASO
is another one that has been dying to break out!
which closed down $1.9, or 2.63, but, was down more than $7!

HappyTrading
Posted January 9, 2008 at 11:51 am | Permalink (Edit)
GOOG
GOQBF, Feb 730 calls, bought at $4.8
which ended up $21.5!!

There were also many other plays:
StandUpComic Bob
Posted January 9, 2008 at 12:09 pm | Permalink (Edit)
PBR

Mr_Sparkle
Posted January 9, 2008 at 12:11 pm | Permalink (Edit)
ABT - now at 52 wk high.

StandUpComic Bob
Posted January 9, 2008 at 12:25 pm | Permalink (Edit)
GDX

braindrain
Posted January 9, 2008 at 12:53 pm | Permalink (Edit)
Volume on aapl is flying

Luck -o- the Irish
Posted January 9, 2008 at 12:54 pm | Permalink (Edit)
gonna calendar spread AA
short Jan 30p; long Apr 30p
short Jan 32.5c; long Apr 32.5

optiondragon
Posted January 9, 2008 at 12:57 pm | Permalink (Edit)
Man ELN!!!!!

rr
Posted January 9, 2008 at 1:02 pm | Permalink (Edit)
wow…AAPL made my day
Great job, everyone! This is how the Happy Trading community works together!

Now, let’s see how the market closed:

VIX was finally calming down, losing 5.15%; a good thing for the market. INX2 (Internet), SOX (semiconductors), BTK (biotechs), and SWH (software) all closed green. UNG (natural gas) has been moving up well, gaining another +2.21%. XLF (financials) added +1.89%. FXI (Chinese ADRs) jumped +6.28%, while MOO (agriculture) gained +1.6%.

SPX

SPX added +18.94 points to close at 1409.13, almost back to 1410. It came close to the support level at 1375 and bounced up. Moving above, and staying above, 1410 would be encouraging.

Nasdaq

Nasdaq jumped +34.04 points to close at 2474.55, above the 2450 support level. Not bad. The November low was 2550 and getting back above this level would make me feel more comfortable.

This morning, MOS reported solid earnings, but, its shares closed up only $0.64! The recent rise in MOS (from $70 to $100 in the past 5 weeks) and the tougher market conditions probably gave investors some reasons to be more cautious. There are, however, many other stocks in this sector that may have more room to go up. Here are the top holdings of MOO. After the market today, AA reported a 4Q profit that jumped +76%! Its shares were up +4.16% in AH trading. GES raised its 2008 guidance on robust holiday sales. Its shares jumped +5.85% in AH session.

Good night and HappyTrading! ™