Wang’s Happy Trading

The market was very volatile today. It opened lower but started to recover immediately. It then dropped again in late morning and went below the opening low. But, after lunch, it started to come back up.

The Dow ended up +21.16 points; SPX was down 11.54 points; and Nasdaq fell 35.48 points.

Here’s how the market looked at the close:

Most sectors were in the red. FXY (Yen) and FXE (Euro) continued to go higher. GLD (gold) only managed to gained +0.47%, while SLV (silver) lost 2.16%. BTK (biotechs) fell 3.03% and INX2 (Internet) lost 2.08%. USO (oil) went down 3.71% and OIH (oil services) dropped 4.75%. UNG (natural gas) stumbled 7.05%, while DBA (agriculture commodities) relinguished 5.66%. FXI (Chinese ADRs) managed to slide only 1.75%.

SPX

SPX lost 11.54 points to close at 1276.6. It went below its January low today, but, managed to close just above. Its daily MAs and MACD continued to slide.

Nasdaq

Nasdaq fell 35.48 points to close at 2177.01. It closed below the 2200 level. The daily MAs and MACD also went lower.

The market perhaps performed better than what many people had feared after the JPM/BSC deal news came out on Sunday. Now, we wait for the Fed. I think the market would probably think a 0.5 rate cut is not enough; 0.75 or even 1 point could perhaps induce favorable reactions.

The financial sector was a mess today. JPM actually gained more than +10% on the BSC deal. LEH dropped more than 48% at one point, trading just above $20/share. It managed to recover a bit and closed at $31.75, still down 19.13%. UBS fell more than 11% and GS lost 3.72% (GS traded near $140 at the day low). GS is reporting quarterly earnings tomorrow. SKF (ultrashort financial ETF) traded above $150 today. It closed at $137.52, up +4.08%.

Good night and HappyTrading! ™