Wang’s Happy Trading

Well, the market just kept on “slip sliding away”. Ironically, the lyrics of this “Simon & Garfunkel” song say, “You know the nearer your destination, the more you slip sliding away.” Funny, these hippie song writers perhaps knew more than what we give them credit for, as the market capitulation may be near.

The Dow was down 153.54 points; SPX lost 20 points; Nasdaq tumbled 43.15 points!

Here’s how the market looked at the close:

VIX is nearing $30, up +6.88%. BTK (biotechs) fell more than 3%. USO (oil) jumped +2.27%, while UNG (natural gas) gained +2.47%. Crude closed at almost $108/barrel!! GDX (gold miners) and XME (metals and mining) were weak, losing 3.8% and 5.16%, respectively. OIH (oil services) slid 2.85%. XAU (gold/silver index) dropped 3.8%, although GLD (gold) was nearly flat. MOO (agriculture) was very weak, tumbling 5.83%, but, DBA (agricultural commodities) gained +1.81%. FXY (Japanese Yen) added another +1.21%, trading at its new all-time high!

SPX

SPX lost 20 points to close at 1273.37. It continued to slide along its daily lower BB. The daily MAs extended their bearish formation. The MACD also went lower.

Nasdaq

Nasdaq stumbled 43.15 points to close at 2169.34. It closed below the 2200 level. Its daily MAs sloped lower. The MACD dropped.

This weekend, I said that “SPX’s next support is between 1225-1250; for Nasdaq, the support is between 2100-2200.” Nasdaq is already within that range. SPX is still testing its Jan low of 1270. The market lacked buyers today and just “slipped sliding away”. We did not see sharp drops, so, the capitulation has not happened yet. We’ll wait and see what the market does tomorrow. Sometimes, waiting on the sideline for a few weeks can save a lot of money, and a lot of stress.

There was an article by Barron’s this weekend saying that GOOG could fall below $350! GOOG shares were under attack today, ending down almost $20, or 4.55%. CME dropped more than $30, or 6.14%, under the bearish market environment. CME traded almost $715/share at the end of 2007. In just 3 months, it is now trading at $461.25, falling $250, a 35% correction!! ISRG was trading above $300 about 2 weeks ago. It is now trading at $255.58, down another $9, or 3.46%, today. After the market, TXN lowered its 1Q outlook. TXN was down 3.37% in AH trading. The Healthcare sector is under a lot of pressure after the market, as WLP slashed its guidance for 2008. WLP traded down almost 17% in AH.

Good night and HappyTrading! ™