Wang's Happy Trading

After making a bounce last week, the market came down to test the recent lows this week. In my last weekend’s 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.”

The venting turned out to be strong. The market penetrated below the 10-day MA on Wednesday. On the member board, I said,

HappyTrading
Posted February 5, 2008 at 10:29 am | Permalink (Edit)
market
VIX has not shown intraday top yet; with 10-day MA not holding quite well, the market may need to test the recent lows: SPX 1320, Nasdaq 2300

The market tested the recent lows on Thursday and bounced back. SPX closed the week above 1320, and Nasdaq closed above 2300.

Let’s do a quick review of the market actions this week:
On Monday, the market started its venting. On Tuesday, the market’s downward momentum accelerated as the ISM number was low. On Wednesday, the market tried to make a bounce but succumbed to the afternoon selling. On Thursday, the market tested the recent lows and made a bounce. On Friday, the market was somewhat mixed. The Dow closed down 64.87 points; SPX slid 5.62 points; but, Nasdaq gained +11.82 points.

We, again, traded very lightly this week, as the market is nervously volatile. Perhaps one of the best positions is still being in cash. Here are the closed trades:

FXP, common shares, at $91.3, +6.1% (Luck -o- the Irish’s trade)
MOS March 90 calls, MOSCR, at $12.5, +8.7% (partially out)
MOS March 90 calls, MOSCR, at $12 +4.3% (all out)

The open trades are:
YHOO, common shares, at $29 (open)
Friday close: $29.20; unrealized gain/loss: +0.7%

JOYG ($64)
JQYCL, March 60 calls, at $7.5 (open, nibbling)
Friday close: $7.4; unrealized gain/loss: -1.3%

FCX March 95 calls, FCXCS, at $5.25 (open)
Friday close: $4.95; unrealized gain/loss: -5.7%

This market is still on shaky grounds. We’ll take a closer look at where the major indices and sectors stand tomorrow, in next week’s Market Forecast.

Happy Saturday!
HappyTrading! ™