Wang’s Happy Trading

It was a day for the bulls, and a day of “the cows”! MOO (agriculture ETF) jumped more than +3%, as many of its components continued to make new all-time highs! Last night, in my Market Forecast, I said of the “MOOs”,

“This sector looks ready to break out again! POT, MOS, and CF have been making new all-time highs. But, they might be just getting started on a new leg up! MOO has just made a new bullish formation with the 20-day MA peeking above the 30-day MA. MON has also been strong.”

And, here they come! The cows are coming home! (More on some individual stocks later.)

Riding on the cows’ backs, the bulls charged ahead to a day of healthy rises (ok, pun semi-intended. LOL!). The Dow closed up +189.20 points; SPX added +18.69 points; and Nasdaq gained +24.13 points.

Here’s how the market closed:

SOX (semiconductors) and BTK (biotechs) showed some strength today, adding +1.33% and +3.19%, respectively. OIH (oil services) went up +2.06%, and metals are still hot, as XME (metals and mining) garnered anther +3.14% (see Market Forecast). We already mentioned MOO (+3.12), while DBA (agriculture commodities) also jumped (+3.05%). *Notice that MDY (mid-caps) went up quite a bit today with a 2.39% advance.

SPX

SPX added +18.69 points to close at 1371.80. It finally closed above the daily MAs. The 10- and 20-day MAs have begun to turn up. The MACD also went higher.

Nasdaq

Nasdaq gained +24.13 points to close at 2327.48. It bounced off the 2300 support again. The MACD glided up. Its daily MAs now are pinched closer together. This difference between the 3 daily MAs is less than 25 points.

Well, there were no rescue deals being announced on the bond insurers today. But, they did get their “AAA” rating affirmed by the S&P. The market seemed to be reacting well to that news. The broader market has gone above the daily MAs. If Nasdaq follows suit, it could provide the market enough momentum to catch the daily upper BB.

This morning, ERTS announced a $2 billion offer to buy TTWO. TTWO shares jumped +54.9%, while ERTS dropped 5.23%. GYI agreed to a $2.1 billion buyout from Hellman & Friedman LLC. Its shares went up almost +30%, closing at $31.67. As mentioned earlier, MOO gained +3.11% today. Many of the popular names in this sector made new all-time highs: POT $164.5, MOS $117.4, and CF $131.08. MON advanced $5.25, or +4.5% to close at $121.92. TNH flew $11.89, or +9.3%, to close at $139.72!

Good night and HappyTrading! ™