Wang’s Happy Trading

The market survived a week of “seesawing” actions! But, managed to come away once again with a win, although the techs were on the weak side. For the week, the Dow added +32.81 points; SPX gained +3.12 points; and Nasdaq slid 18.45 points, but stayed above 2300 at 2303.35.

Last weekend, in my Market Forecast, I said,

“For the new week, I think the market is in a good position to rise above the daily MAs. But, like last week, I think we need to see the market open strongly; any weakness could increase the risk of testing the bottom again. A strong opening could carry the momentum through the week. The daily MAs are bunched up pretty closely now. With one good solid rally, the market can rise above the 30-day MA, which would likely cause the MAs start to turn up. So, if the market rallies up Tuesday and Wednesday, we could see another positive week. We’re still waiting for the market to make up its mind and confirm the double-bottom.”

The opening was weak, as the market slid on Tuesday. But, it rallied back on Wednesday. The market ended slightly positive, but, also saw the risk of testing the bottom. Still, we’re waiting for the bottom to be confirmed.

Here’s a quick review of the actions this week:
On Tuesday, the market opened strong, but, was met with record-high oil prices and retreated into the red. On Wednesday, the market rallied back from a weak open, as gold reached a new all-time high. On Thursday, the market continued its “seesawing” actions, opening high, but, closing low. Friday was no exception. The market was weak all day until the last 45 minutes, where the Dow went from being down 100 points to close nearly up +100 points! The cause for Friday’s late rally was at least partially attributed to the news that a rescue plan for bond insurer, Ambac Financial Group Inc (ABK), could be announced on Monday or Tuesday next week.

Among all this craziness, we came through the week with some good “HappyTrading“:
POT ($156.7)
PYPDK, Apr 155 calls, at $13.4, +4.6%

RIMM ($107.8)
RULCT, March 100 calls, at $11, +175% (all out)

DRYS ($86.3)
DQRCQ, March 85 calls, at $7.2, +4%

GS ($175.9)
GPYDR, Apr 190 calls, at $5.6, -18.8%

RIMM ($97.85)
RULCT, March 100 calls, at $4.65, +16.2% (partially out)

MOS March 105 calls, MOSCA, at $9.1, +24.6%

Besides the GS trade, everything was in the GR$$N, with RIMM being especially profittable at +175% gain. GS was a Apr call, which we could have held on to. But, with a volatile market environment, it was perhaps prudent to get stopped out and wait. If good news for the bond insurers do come through early next week, we might be looking to get back into the same GS trade again.

I’m still trading lightly, and the only open trade this week is:
BSC ($84.5)
BVDCQ, March 85 calls, at $4.7 (open)
Friday close: $5.2; unrealized gain/loss: +10.6%

I’ll be back with my weekly Market Forecast tomorrow. Enjoy your weekend!

Happy Saturday!
HappyTrading! ™