Wang’s Happy Trading

A slew of negative news put additional pressure on the market today. More problems in the wake of credit concerns revealed themselves in Thornburg Mortgage Inc. (TMA). Further, news about Carlyle Capital Corp Ltd, an European firm that invests in mortgage-backed securities, not meeting margin call requirements spooked investors about mortgage REITs. This exerted more pressure on the financial sector, which, in turn, pressed on the whole market.

The Dow ended down 214.60 points; SPX dropped 29.36 points; and Nasdaq fell 52.31 points.

Here’s how the market looked at the close:

Most sectors closed in the red. VIX jumped almost +12%! INX2 (Internet), SOX (semconductors), and BTK (biotechs) all lost more than 2%. GLD (gold) was down 1.25%, while SLV (silver) dropped 2.65%. GDX (gold miners), however, closed slightly green (AEM made a new all-time high today at $74.9). XLF (financials) stumbled 3.46% and HGX (housing) fell 4.79%. FXI (Chinese ADRs) lost 4.6%. FXY (Japanese Yen), mentioned this weekend, gained +1.33%.

SPX

SPX lost 29.36 points to close at 1304.34. It closed below the 1325 support and just above 1300. The MACD fell further.

Nasdaq

Nasdaq fell through its 2250 support, closing at 2220.50, down 52.31. points. Its daily MAs continued to slide and the MACD also dropped.

The market has fallen below the support level that it has held for 8 weeks! It is now looking to test the lows set in January. For Nasdaq, it is 2200. For SPX, it is about 1270.

This morning, JOYG reported solid earnings and saw its shares rise more than +5%. BUCY also gained on that news, up +3.16%. After the market, MRVL announced a quarterly profit that beat the estimates. Its shares, however, reversed an initial pop and was trading lower by more than 5% in AH. On the other hand, NSM gave inline results with lower-than-expected guidance, but saw its shares jump +9.55%!!

Good night and HappyTrading! ™