Wang’s Happy Trading

I have been talking about gold A LOT lately. Yesterday, I mentioned that GLD and SLV are rising again and we may see $1000 gold. And, here it is! Gold reached $1001/50/ounce today, but, closed under $1000. It does seem that gold is going higher, though.

The market was weak at the open, testing the lows again. But, when S&P issued a statement saying that the subprime mortgage write-downs may be coming to an end, the market jumped on the opportunity to rally. The Dow ended up +35.50 points; SPX added +6.71 points; and Nasdaq gained +19.74 points.

Here’s how the market looked at the close:

INX2 (Internet), SOX (semiconductors), BTK (biotechs), and SWH (software) all closed in the green. Metals were strong today: GLD (gold) +1.37%, SLV (silver) +2.18%, XAU (gold/silver index) +3.49%, XME (metals and mining) +3.84%, GDX (gold miners) +4.47%. OIH (oil services) added +1.77%. UNG (natural gas) went above $50 with a new all-time high, +2.52%!

SPX

SPX added +6.71 points to close at 1315.48. It went below the 1300 level during the day, but bounced back to close above. It also closed above its 10-day MA. The MACD went higher.

Nasdaq

Nasdaq gained +19.74 points to close at 2263.61. It closed above its 10-day MA. Its MACD went up and the “difference” went positive.

The market is certainly trying to establish this bottom. It is actively looking for reasons to rally, and any chance it gets, it runs up. We’re still watching the resistance levels: SPX 1340 and Nasdaq 2300. It’ll be good for the market to get above these levels before Tuesday’s Fed meeting, so the market can have a clear path to run. Tomorrow, we have the CPI and consumer sentiment data. So, let’s see how the market reacts, although it does seem bold for the market to have rallied up today. Maybe we’ll get some benign news?

As gold keeps its engine going, gold miners are gaining momentum also. AEM made a new all-time high today, adding +5.42% and reached $78. After a 3-month drop from $75/share to $20/share, LDK saw buyers rushing in, as it announced near sellout of its wafer capacity for 2008 and 2009. Its shares jumped +23.74%! As mentioned before, UNG (natural gas) reached a new all-time high of $50.12 today. Some of the popular names in this sector did very well: UPL +4.82%, APA +1.9%, ECA +3.29%, and SWN +4.53%. SWN also has a 2-for-1 split on 3/26.

Good night and HappyTrading! ™