Wang’s Happy Trading

The market spent its time today letting off some steam. It held up well, with techs being a little weaker. This weekend, in my Market Forecast, I said,

“For the new week, I think the market could feel the need to vent. How the market handles the venting will be very important. …If the market can vent without losing much altitude, we may see sideways trading during the early part of the week, and a continued move up above the 30-day MA in the latter part of the week. If the venting is strong, the market may need to test its 10-day MA.”

So far, the market held up well. If the market turns around tomorrow, we may see a continued rally to above the 30-day MA. We’ll also keep an eye on the 10-day MA for support, depending on how strong the venting is.

The Dow closed down 108.03 points; SPX slid 14.60 points; Nasdaq fell 30.51 points.

Here’s how the market looked at the close:

INX2 (Internet), SOX (semiconductors), BTK (biotechs), and SWH (software) were all down. HGX (housing) and XLF (financials) finally stopped to take a breather. GLD (gold) was down slightly, but, GDX (gold miners) fell another 2%. OIH (oil services) faught with the resistance at $165 and closed up +1.8%. FXI (Chinese ADRs) gained +2.55%.

SPX

SPX lost 14.60 points to close at 1380.82. It managed to close above the 1375 level. Its 10-day MA and MACD continued to rise.

Nasdaq

Nasdaq fell 30.51 points to close at 2382.85. It closed just below its 20-day MA. The 10-day MA and MACD continued to rise.

This morning both JOYG and BUCY received an upgrade to “BUY”. JOYG ended the day up only +0.78%, while BUCY added +3.44%. Both of these stocks are pretty much back to their December highs, completely discounting the recent market drop. After the market, SIRF reported disappointing earnings. Although its revenue rose more than +35%, its profit dipped 89%! Its shares slumped more than 37% in AH trading. SOHU, another foreign Internet company, reported solid earnings that beat the estimates. Its shares jumped +3.47% after the report. Tomorrow morning, both CME and NYX report their earnings before the market opens. These should bring even more activity to a sector that is already teeming with merger talks (CME/NMX, rumors on ICE as a buyout target).

Good night and HappyTrading! ™