Wang’s Happy Trading

Wow, “what a difference a day makes!” It’s Fed to the rescue! $200 billion of liquidity to be pumped into the financial markets! Guess Simon & Garfunkel were right: when you “slip sliding away”, you’re almost there!

The market opened strong, dozed off until after lunch, and closed with a roaring freight train! The Dow was up +416.66 points; SPX added +47.28 points; and Nasdaq flew up +86.42 points!

Here’s how the market looked at the close:

VIX dropped more than 10%! Good for the market! INX2 (Internet), SOX (semiconductors), and BTK (biotechs) all gained more than +10 points! XME (metals and mining) added +6.52%! XAU (gold and silver index) advanced almost +10 points, or +5.06%. USO (oil) was up again, +0.83%, with the crude trading above $108/barrel; while OIH (oil services) garnered +5.27%. MOO (agriculture) charged up +6.02% after the recent, extreme selloff. FXI (Chinese ADRs) hopped +9.74%!!

SPX

SPX jumped +47.28 points to close at 1320.65, above the 1300 level! It is almost touching the 10-day MA, so, the nearest resistance could be 1340. The MACD turned higher.

Nasdaq

Nasdaq flew up +86.42 points to close at 2255.76, above the 2200 level. It is basically at the 10-day MA; the nearest resistance seems to be 2300. Its MACD also went up.

Well, the Fed certainly pressed the right button this time, and the reaction was overwhelmingly positive. If this bounce is for real, if what we needed to do was just “testing the January low”, then, this rally have a lot of distance to go. But, let’s see how the market handles the rest of the week. The market needs to first get above the daily MAs. So, we’ll be watching to see how the market handles the above-mentioned resistance levels (SPX 1340; Nasdaq 2300).

On the member board, this morning, I said,
HappyTrading
Posted March 11, 2008 at 7:01 am | Permalink (Edit)
MOOs
are probably going to get some extra attention due to the recent extreme selloff.

As mentioned before, MOO jumped more than +6% today. I think the agriculture sector has come down fast in the past 3 trading sessions. In a stronger environment, these stocks should do a lot better. Among the favorites are: POT, MOS, CF, MON (I have an open position in this). Oil services (OIH) also seems very good. With crude trading above $108 and still going up, this sector may finally receive some postponed loving. DO and RIG look strong. The solar sector has also been beaten down quite a bit. JASO is reporting tomorrow morning. I’m keeping an eye on FSLR and SPWR.

This morning, GOOG announced European approval for its purchase of DoubleClick. Its shares traded strongly in today’s bullish environment, up +6.34%, or over $26, completely reversing yesterday’s drop. BIDU traded up as well, +7.91%. I like how its looking here; nearest resistance is between $275-$280, if it can break above and away from $260 (psychological barrier). After the market, CAT raised its 2008 outlook. Its shares traded up almost +3% in AH. This morning, again, on the member board, I also said,
HappyTrading
Posted March 11, 2008 at 7:08 am | Permalink (Edit)
JOYG/BUCY
were very bullish before the big drop; they should do well in an improved market environment.

The guidance boost from CAT should bring additional positive momentum to JOYG (I have an open position in this) and BUCY, although BUCY has jumped quite far today, up +10.77%.

Good night and HappyTrading! ™