Wang's Happy Trading

The market stayed pretty flat ahead of the Fed meeting tomorrow. Commodity related sectors sold off as crude dropped back down to $115 and change. Metals were mostly lower. It seemed that at least some money was rolling into technology sectors, as Nasdaq led the market.

V reported very good earnings after the market yesterday, but, the stock slipped right after the news came out. Yesterday, I said on the member board:

HappyTrading
Posted April 28, 2008 at 12:01 pm | Permalink (Edit)
MA/V
MA charts actually look better.

So, I got myself into a MA trade, which was another “bagger“! It would’ve been a 2-bagger, if I had just let it ride for a few hours.

I picked up Apr 280 calls of MA at the end of the day yesterday at $11.5 and sold them this morning at $28 for a +143% gain. Those options went as high as $39!! The charts are often very useful when it comes to earnings season, giving good indication as to how the reactions to the reports are going to be.

V, after opening lower and venting, closed higher like a run-away freight train! During the day, I commented on V:
HappyTrading
Posted April 29, 2008 at 7:01 am | Permalink (Edit)
MA
Just cashed out on MA bagger. entered at $11.5 and exit at $28 on May 240 calls.

V
also reported good earnings; but, was toppy. that’s why I said yesterday that MA charts looked better.

HappyTrading
Posted April 29, 2008 at 10:13 am | Permalink (Edit)
V
has vented and also coming back up.

HappyTrading
Posted April 29, 2008 at 12:05 pm | Permalink (Edit)
V
ramping up!

HappyTrading
Posted April 29, 2008 at 12:17 pm | Permalink (Edit)
V
is not done going up.

HappyTrading
Posted April 29, 2008 at 12:42 pm | Permalink (Edit)
V
flying now!

Sometimes how a stock trades after earnings may not be completely in sync with the earnings report. Sometimes, it’s just a matter of whether the charts have the room for the stock to move, one way or the other. The charts can give you a pretty good idea on how, collectively, people intend to trade the stock after earnings.

Let’s take a look at how the market closed. The Dow was down 39.81 points; SPX lost 5.43 points; and Nasdaq gained +1.7 points:

As mentioned earlier, commodity related sectors were weak: USO (oil) -2.82%, OIH (oil services) -3.21%, UNG (natural gas) -4.59%, GLD (gold) -2.14%, SLV (silver) -2.72%, XME (metals and mining) -4.56%. But, the techs were stronger as INX2 (Internet), SOX (semiconductors), and SWH (software) closed in the green. MOO (agriculture) was also weak, losing 5.09%. FXI (Chinese ADRs) came back to hang on to a $0.11 gain.

SPX

SPX lost 5.43 points to close at 1390.94. Its 10-day MA continued to go up, staying in the bullish formation. The MACD flattened.

Nasdaq

Nasdaq added just +1.7 points to close at 2426.1. The daily MAs looked good in their bullish formation. The MACD stayed positive.

The market kept things flat ahead of the Fed meeting. The broader market was held back by a sell-off in the commodities, but, we saw some money rolling into techs. Overall, the major indices still show bullish trends on their daily charts. If the Fed has nice things to say tomorrow, the market has room to move up.

GOOG, BIDU, RIMM, and AAPL were very strong today, helping Nasdaq to stay green. RIMM, in which we (published trade) entered a trade yesterday, broke out above $125 today. As the day went, I made a quick note on the member board:
HappyTrading
Posted April 29, 2008 at 10:18 am | Permalink (Edit)
RIMM
if it breaks above $125, it should get a breakout, which would be good for the market.

RIMM sailed as high as $127.58, after surpassing $125, but, came back down to close at $126.29. I cashed out my RIMM trade for a +34.7% gain. Its daily chart still looks good, but, the intraday charts were getting toppy. I cashed the May 120 calls (RULED) out as high as $9.3 (some members got $9.5). Those options traded as high as $9.8, but, closed at $9.05 today.

PNRA reported earnings that beat the estimates and the company raised its 2Q guidance. I entered a position just before the close. Although I have not traded options in this stock, the charts were too good to pass it up. I think PNRA could reach $50 before hitting any meaningful resistance. The stock traded up more than +6% in AH trading.

As mentioned earlier this year, I will make more “educational” posts and/or comments this year, especially on the member site, to explain more of the charting techniques that I use. I’m also starting to talk out loud the “thinking” process behind some of the trades that I make on the member board. Our goal is to empower our members and readers so that everyone could learn to find profittable trades on their own. In our community, we aim to build wealth, together!

Right now, since I just got back from my vacation and there are some changes being made on the site, our full membership is closed to new subscribers. But, we have created new day passes for readers to check out our member site and any member-only articles. There’s now a new 7-day pass, which would even allow readers to come in and “socialize” with our members for a week on the member board, and perhaps exchange trade ideas. To find out more, please click here: ENTER The Member Site!

Good night and HappyTrading! ™