Wang’s Happy Trading

Last weekend, in my Market Forecast, I said,

“For the new week, the market could look to start drawing a bottom. If SPX 1320 and Nasdaq 2350 don’t hold, we might be looking at SPX 1250 and Nasdaq 2200 for support, which won’t be pretty, to say the least! The “R” word has made a lot of people nervous (so, I’m not going to mention it again), and, I don’t think it does anyone any good if it does happen, since the US economy is connected with to world’s economy. I also think that the Fed should step in right now and act decisively. 2 weeks (until 1/30) may not seem to be a long time. But, in 2 weeks, without any change in the market sentiment, the market could lose another 5-6%! Earnings season is also heating up, and, we’ll be paying attention to those.”

Well, the Fed did indeed act decisively and cut the rates, and the market started to look for a bottom.

Monday was a holiday, as we paid our respect to MLK. On Tuesday, the Fed came in with a decisive rate cut of 75 Bps. That helped the market to minimize the loss. On Wednesday, the market dropped initially to test the Monday low, with Nasdaq coming down to the 2200 level. Then, it staged a fantastic comeback, ending with the Dow up by more 300 points! On Thursday, the market continued the rally cautiously and recorded respectable gains. On Friday, the market jumped early on the heels of MSFT’s bullish earnings report. But, given it was Friday, profit-taking soon came in, as I said on our member board before the market opened:
HappyTrading
Posted January 25, 2008 at 6:29 am | Permalink (Edit)
market
let’s see how the market intraday charts look late morning. might see some profit-taking; but, short-covering could push things up fast. I would be looking to take partial profits. will have more updates.

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We did very well this week, with all, but 1, trades in the GR$$N:
GOOG Feb 620 calls, GOOBD, at $14, +12% (partially out)
ICE Feb 150 calls, IHHBJ, at $10. +11.1%
SHLD Feb 100 calls, KTQBT, at $7, +7.7%
CHL Feb 75 puts, CHLNO, at $5.7, +7.5%
T March 35 puts, TOG, at $1.8, -28%
WYNN Feb 110 calls, UWYBB, at $5.1, +60.8% (partially out)
WYNN Feb 110 calls, UWYBB, at $7.5, +47.1% (all out)
FSLR Feb 200 calls, HJQBT, at $11.5, +21% (partially out)
FSLR Feb 200 calls, HJQBT, at $12.4, +30.1% (all out)

The open trades are:
Ebay Feb 30 calls, XBABF, at $1.25 (open, nibbling; 3 contracts, small earnings bet)
Friday close: $0.2; unrealized gain/loss: -84%

GOOG Feb 620 calls, GOOBD, at $20.5 (1/22/08), $8.5 (2x), $9.8 (2x) (open, avg cost $11.42)
Friday close: $7.7; unrealized gain/loss: -32.5%

OIH Feb 170 calls, OIHBN, at $6.25 (open)
Friday close: $3.6; unrealized gain/loss: -42.4%

I’ll be back tomorrow with my weekly Market Forecast.

Hope you’re enjoying your weekend!
HappyTrading! ™