Wang’s Happy Trading

This weekend, in my Market Forecast, I said
“For the new week, the beginning of the week could be very important in shaping how the market moves. VIX came off of the support at $18 last week, but, was not really able to make a move up. If the VIX gets driven below $19, it could easily test $18 again. Breaking below $18 will be good for the market. The XLF was weak last week. We’ll need to see some strength back into the financials… I will be looking at VIX and financials for some indications in the beginning of the week.”

In the morning, RIMM jumped out of the gate, as it announced a new Blackberry model, Bold, and adding MSFT Windows Live tools to the Blackberry platform. The market responded to that news well. VIX started dropping below $19. I was happy to also see that GS was strong in the morning, since it normally gives good indications on the financials. The first thing I said on the member site today was:
HappyTrading
Posted May 12, 2008 at 6:43 am | Permalink (Edit)
good morning!

RIMM/GS
strong; good for the market.

Then, OptionDragon got us into some RIMM trades:
optiondragon
Posted May 12, 2008 at 6:48 am | Permalink (Edit)
EXM, RIMM I bought some may 140 calls

HappyTrading
Posted May 12, 2008 at 7:51 am | Permalink (Edit)
RIMM
going higher, looking for $140 soon?

Frosty Muggs
Posted May 12, 2008 at 7:51 am | Permalink (Edit)
RIMM - May 140 calls @ 2.51

I, myself, first got into June 135 calls, a little risky. But, later, couldn’t resist getting into the May 140 calls for a quick scalp. Great trades, everyone!
(These comments are only available on the member site.)

VIX proceeded to go lower and closed under $18, and the market closed much higher. The Dow was up +130.43 points; SPX added +15.3 points; and Nasdaq jumped +42.97 points:

Techs were very strong today and led the market in its rally: INX2 (Internet) +1.41%; SOX (semiconductors) +1.16%; BTK (biotechs) +0.89%; and SWH (software) +1.96%. Commodities took a breather as USO (oil), OIH (oil services), and UNG (natural gas) were all down. But, metals still found buysers. XME (metals and mining) added +0.59% and SLV (silver) garnered +1.99%. FXI (Chinese ADRs) came from behind to close in the green, up +0.49%.

SPX

SPX added +15.3 points to close at 1403.58. It closed above the 10-day MA. The MACD flattened.

Nasdaq

Nasdaq jumped +42.97 points to close at 2488.49. It closed above 2480, which had seemed to be a resistance after the “Big Green Day” on 5/1. Its MACD went higher.

As I was saying in my Market Forecast and Sector Watch this weekend, “The techs don’t look too bad.” RIMM’s good news gave the techs some nice reasons to rally. Well, VIX closed below $18. That was the support that it held last week. $18 could now become a resistance for VIX, in which case, VIX is likely to hit $16 before finding support. This could mean more upwards movements for the market. If the market catches up with the daily upper BB, it could form a new leg up.

RIMM was not doing all the work by itself today, although it did make a new all-time high going above $143! AAPL, GOOG, BIDU, AMZN, and EBAY (some big names in the techs) all did well. AAPL is nearing $190 and BIDU added almost +6% (I published new trades on these this morning). AAPL started to gain strength as there was news that iPhones were sold out. GOOG added almost $12. EBAY climbed +3.73%. After the market, PBR reported solid earnings and saw its shares jump +2.74%. FLR also had a stellar quarter. Its shares flew up $12.63, or +7.59%, as it raised its 2008 guidance.

Good night and HappyTrading! ™