Wang’s Happy Trading

After a gap-down open, the market started climbing higher. Yesterday, worries about bond insurers reversed a market rally on the Fed’s new rate cut. Today, encouraging comments from the #1 US bond insurer, MBIA (MBI), helped to reverse a down open. Even AMZN ended up +4.7%, after being down 12% in yesterday’s late trading!

Last night, I said,

“It is difficult to say whether the market is ready to test the recent low at this point. SPX stayed above the 10-day MA and the MACD difference turned positive. If it gets above 1375 again, it might need to reach that 1410 level before testing the bottom. If it penetrates below the 10-day MA, it is more likely to be on its way to test the lows, which would probably find support in the 1300-1320 region.”

And, on Monday, I said,

“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.”

Well, today, SPX closed above that 1375 level, and the 10-day MA started to turn! The Dow closed the day up +207.53 points; SPX added +22.74 points; and the Nasdaq gained +40.86 points.

Here’s how the market looked at the close:

The techs had a solid day, with INX2 (Internet), SOX (semiconductors), BTK (biotechs), and SWH (software) all closing in the green. OIH (oil services) continued to be weak as USO (oil) dropped 1%. GLD (gold) and GDX (gold miners) were also in the minuses. XME (metals and mining), however, advanced more than +2%! XLF (financials) and HGX (housing) added +4.07% and +6.07%, respectively. Even FXI (Chinese ADRs) rebounded and garnered +1.21%.

SPX

SPX added +22.74 points to close at 1378.55. It closed above the 1375 level and above its 20-day MA! This is very positive! The 10-day MA had begun to flatten and the MACD continued to rise. SPX could be looking to test the 1410 level from here.

Nasdaq

Nasdaq gained +40.86 points to close at 2389.86. It closed above the 2350 level and just touching its 20-day MA. Its 10-day MA had started to turn up and the MACD went higher.

This morning, MA delivered a blowout earnings report, trouncing the estimates. Its shares closed up +9.52%, or $18, at $207; but, traded as high as $218.45 today! After the market, GOOG slightly missed the estimates with its earnings and saw its shares trading down 6.54% in AH. ISRG, on the other hand, completely reversed the 2-day slump that came ahead of its earnings by reporting a 4Q profit that more than doubled! Its shares traded up more than +15%, or $39.05, on top of the $19 gain during the regular session. MOT announced plans to consider separating its phone unit from its other businesses. Investors seem like hearing the news, bidding up MOT shares by almost +11% after the market.

Good night and HappyTrading! ™