Wang’s Happy Trading

The market felt lethargic all day today. Durable goods data dropped and rekindled some worrying on the market. It made an attempt to rally back in the afternoon, but, still closed in the red. Metals were strong again today. Oil jumped and related sectors showed strength. Select agriculture plays were quite strong (for example, POT, TNH, MOS).

The Dow close down 109.74 points; SPX lost 11.86 points; and Nasdaq fell 16.69 points.

Here’s how the market looked at the close:

USO (oil) jumped +4.1%, while OIH (oil services) gained +3.12%. Metals continued with their advances: GLD (gold) +1.15%, SLV (silver) +2.53%, XAU (gold/silver index) +2.76%, XME (metals and mining) +1.75, and GDX (gold miners) +1.75%. XLF (financials) lost 3.61% and HGX (housing) went lower by 4.44%. Currency ETFs closed on the green side: FXY (Yen) +1%, FXE (Euro) +1.43%, and FXB (British Pound) +0.34%.

SPX

SPX lost 11.86 points to close at 1341.13. It managed to stay above 1340. The MACD went up a little.

Nasdaq

Nasdaq fell 16.69 points to close at 2324.36. It closed above the 2300 level. Its MACD is still rising.

Perhaps the disappointing economic news and the higher oil prices stalled the market today from breaking away and firmly establishing the bottom. The market, however, did manage to stay above the support level (SPX 1340; Nasdaq 2300). Tomorrow will again be critical. We’ll have to see if the market can hold the above-mentioned support.

RMBS won a patent trial today and saw its shares jump nearly +40%. Many of our members got into straddle/strangle plays before the news came out:
optiondragon
Posted March 26, 2008 at 8:15 am | Permalink (Edit)
bought RMBS apr 23 calls at 1.85 to start a strangle looking to add the apr 15, 16 puts

Great job, people! The conversation is still going on the member board regarding RMBS! After the market, ORCL’s earnings report did not quite excite the investors. Its shares fell 8.31% in AH trading. GOOG shares fell more than 3% in AH, as more data showed that the company’s “Paid Clicks” growth may be slowing. Steel plays again “steal”ed the show today. Among the gainers, CLF added nearly +5%; X traded to a new all-time high, closing up +1.5%; RIO also advanced +5%!

Good night and HappyTrading! ™