Wang’s Happy Trading

Another volatile day, as investors surf the market waves cautiously. The question is: can the market come out of the crashing waves alive? The market opened lower on INTC’s disappointing earnings. The CPI came in benign. After the downdraft in the morning, the market bounced. It stayed in the green for about an hour in the afternoon, but, succumbed once again to the late selling just before the market close. The Dow closed down 34.95 points; SPX lost 7.75 points; and Nasdaq slid 23 points.

Here’s how the market looked at the close:

HGX (housing) and XLF (financials) both closed in the green. SOX (semiconductors) added +0.66% while BTK (biotechs) gained +1.34%. GLD (gold), GDX (gold miners), and XME (metals and mining) lost 1.47%, 4.65%, and 4.28%, respectively. MOO (agriculture) was very weak, losing 6.15%. FXI (Chinese ADRs) went down another 3.93%.

SPX

SPX lost 7.75 points to close at 1373.20. It close just below the support level at 1375. The MACD continued to slid.

Nasdaq

Nasdaq slid 23 points to close at 2394.59. It close just below its support level at 2400. It touched the daily lower BB today and bounced back (same thing also happened with SPX). There might be a near-term relief rally coming soon.

Today, ORCL announced a raised offer to finally acquire BEAS in an all-cash deal valued at $8.5 billion. ORCL shares were up +2.85% and BEAS jumped +18.49%. JAVA (Sun Microsystems) reported solid preliminary results and announced an acquisition deal to buy MySQL for $1 billion. JAVA shares were up +3.67%. ACL broke out to a new all-time high of $154.90 on no apparent news. It closed at $154.53, up +4.92%, or $7.25. Its daily chart shows characteristics that are very similar to those described in my “Identifying Breakout” post on 1/13/2008.

ACL closed above the previous resistance level at $154. It caught the daily upper BB on a volume spike. The median target on ACL is $162 and the high target is $175!

Good night and HappyTrading! ™