Wang's Happy Trading

The market opened lower this morning with disappointing new home sales data. But, the market climbed higher all day to close at the day’s high! This weekend, I said in my weekly Market Forecast,

“For the new week, I think Monday is going to be very important. The market needs to close above the 10-day MA to make me feel more comfortable.”

The market did just that, closing above the 10-day MA! The Dow closed up +176.72 points; SPX jumped +23.35 points; and the Nasdaq added +23.71 points.

Here’s how the market looked at the close:

SOX (semiconductors) and BTK (biotechs) made respectable gains, up +1.48% and +1.75%, respectively. Gold prices reached above $930/ounce. GLD (gold) and GDX (gold miners) both benefitted with each adding more than +1.5%. USO (oil) bounced +0.61% and OIH (oil services) went up +1.38%. XLF (financials) and HGX (housing) were today’s leaders jumping +3.57% and +4.3%, respectively. Even FXI (Chinese ADRs) closed in the green, with a +1.2% advance.

SPX

SPX jumped +23.35 points, or +1.75%, to close at 1353.97. It closed just above its 10-day MA. The MACD continued to rise. In order to see the 10-day MA start to turn up, I think we’ll need to see SPX rise above that 1375 level this week. Closing above it would be an even stronger indicator of a bottom. So, we’ll continue to monitor this level.

Nasdaq

Nasdaq added +23.71 points to close at 2349.91, just below the 2350 level. Its MACD went higher.

This morning, CME confirmed its interest in acquiring NMX for $11 billion. CME shares ended down 0.64% while NMX shares jumped +8.72%. After the market, VMW reported earnings that more than doubled, but, missed the street’s estimates. Its shares got pummeled in AH trading, down 26.83%, or, $22.27! AXP reported a quarterly profit that dropped 10%. Its shares were down 2.89% after the market. WYNN continued to rise today, after last week’s new “BUY” rating, gaining +6.07% at $110.33. It is working hard to establish a base. Above $110, its next nearest resistance is $120.

Good night and HappyTrading! ™