Wang’s Happy Trading

Tonight is Chinese New Year’s Eve 2008. So, Happy Chinese New Year, everyone! I’m going to make this a quick post, going over the market; so, I can have dinner with my family. Our friend OptionDragon will continue with his own post, looking at some interesting stocks.

The market was not very happy today (well, actually, it hasn’t been very happy for the past month. Can the Chinese New Year bring a change? We’ll see.). The market tried bouncing up in the morning, but, couldn’t hold on. Eventually, it succumbed to the selling pressure. The Dow closed down 65.03 points; SPX lost 10.19 points; and Nasdaq fell 30.82 points.

Here’s how the market looked at the close:

Most sectors were down. GLD (gold) made a bounce, up +1.45% and GDX (gold miners) managed to stay on the green side. Techs were weak: INX2 (Internet) -2.06%, SOX (semiconductors) -2.86%, BTK (biotechs) -0.37%, and SWH (software) -0.96%. PBW (clean energy) fell 3.63%. FXI slid another 3.44%.

SPX

SPX lost 10.19 points to close at 1326.45. It managed to close above the 1320 support level. Its 10-day MA has flattened out and could turn down again if the market slides further. The MACD continued to slide.

Nasdaq

Nasdaq fell 30.82 points to close at 2278.75. It is not looking very healthy as the support at 2300 didn’t hold. It could be looking to test the recent low at near 2200.

Today, CME dropped over 100 points, $103.55 to be exact, or 17.59%, to close at $485.25!! The potential merger of CME and NMX has risen concerns by the Department of Justice, which could jeopardize the way both of the companies clearing their own trades. Was the 100-point drop an over reaction? After the market CME bounced $13.55, or +2.79%. CME also received a price target cut, from $700 to $674. But, that’s still above $200 above today’s close! If there’s any re-assurance that the fundamental way of doing business for these exchange companies will not change, this sector may get some buyers rushing in to pick up the much cheaper shares. So, we’ll keep a close watch on the exchanges. CSCO delivered an in-line earnings report, but, disappointed the investors with its outlook. Well, gee, what’s new? CSCO’s shares down almost by 8% in AH trading. CSCO’s earnings news will likely continue to exert pressure on the tech shares tomorrow, at least at the open. So, be careful!

We’ll be looking at the recent market lows for support: SPX 1270-1300 and Nasdaq 2200.

Don’t forget to check back later tonight for OptionDragon’s post!

Happy Chinese New Year!
HappyTrading! ™