Wang’s Happy Trading

It’s Oscar Night!! Congrats to all the winners! Of course, being a person who has done visual effects and animated films, I paid special attention to those categories. I haven’t gotten a chance to see “The Golden Compass”, the winner of Best Visual Effects, yet; but, I did get to see “Ratatouille”. Hats off to the animation artists at Pixar. Another project well-done. Hey, after all, it is the Mouse (Rat) Year!

Ok, let’s bring our attention back to the stock market:
SPX

SPX closed up +10.58 points, at 1353.11. It nearly touched the support at 1325, but, managed to rally back and closed above the 20-day MA! It is just a few points below its 30-day MA. The MACD also went higher.

Nasdaq

Nasdaq has been weaker than the broader market. It did, however, managed to gain +3.57 points on Friday to close at 2303.35, above the 2300 support. Its MACD also rose a bit.

For the new week, I think if the rescue plans do come through for the bond insurers, the market could finally establish the bottom and rise above the daily MAs. The daily MAs (for SPX) are bunched up so close together that the difference among them is less than 10 points! However, I do think that this potential good news for the bond insurers will need to come in the early part of the week. This market is so nervous right now; I don’t think it’ll have too much patience. If the market does get a rally above the daily MAs, I’ll be looking for the market to first catch the daily upper BBs (SPX: 1390-1400; Nasdaq: 2390-2410). Then, we’ll have to see if the market will need to take time to vent, or, if it still shows room to continue higher. Nasdaq is sitting dangerously on the bottom support (2300). So, we’ll need to see renewed strength in the techs to allow the market to go the distance. The bottom supports that I’m watching are still SPX 1325 and Nasdaq 2300.

Sector Watch
Commodities continue to look strong:
GLD (gold)

GLD has begun to ride its daily upper BB higher. Its daily MAs are now in a newly formed bullish formation, with 10- above 20- above 30-day MA. The MACD “difference” (blue bars) has just gone positive. I think we may be seeing “$1000 gold” soon!

XME (metals and mining)

XME set a new all-time high last week at $75.43! It is also riding its daily upper BB higher and seems to have much more room to go. CLF, X, NUE, and STLD have all been strong. FCX and PCU are making good comebacks. ACH, also a Chinese play, has been making gains for about about 8 straight sessions!

UNG (natural gas)

Optiondragon had already made a special post about this sector. UNG has been rallying up relentlessly. Any pullbacks could be seen as buy opportunieties, although $45 could be a resistance. We’ll have to see how it handles this level next week.

MOO (agriculture)

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.

INX2 (Internet)

Among the weakness in techs, INX2 has quietly created a new bullish formation! It’s 20-day MA has just gone above the 30-day MA. GOOG showed strength on Friday, closing above $500. If the market runs, the Internets could be the place to be for techs!

Geez, it’s getting late! Hope you all had a fun weekend!
See you all in several hours!!

HappyTrading! ™