Wang’s Happy Trading

Market cheered today as the CPI came in benign with a 0.2% rise. The market rallied up to the daily upper BB (see charts below). But, in the last 2 hours of trading, the market came back down and only ended with some modest gains.

The energy sector was weak, as crude softened. We cashed the rest of the APA postion out (opened yesterday) and came away with a pretty good trade:
5/13/08
APA ($139.3)
APAFX, June 135 calls, at $9.3, +19.2% (partially out)

5/14/08
APA ($137.6)
APAFX, June 135 calls, at $8.3, +6.4% (all out)

I also cashed out all of my FSLR June calls today at $27 (please see yesterday’s post for the trade). Those options traded as high as $33.5. Depending on the overall market conditions, FSLR could have more room to go.

The Dow finished up +66.2 points; SPX added +5.62 points; and Nasdaq gained +1.58 points:

The commodity related sectors were weak today: USO (oil) -1.46%; OIH (oil services) -2.01%; and XME (metals and mining) -1.53%. Techs held up pretty well: INX2 (Internet) +0.37%; SOX (semiconductors) +1.23%; SWH (software) +0.34%. PBW (clean energy) went above $22 with a +2.34% advance. FXI (Chinese ADRs) added $1.12.

SPX

SPX added +5.62 points to close at 1408.66. It caught up with the daily upper BB intraday, but, came back to close above its 10-day MA. The MACD was flat.

Nasdaq

Nasdaq gained just +1.58 points to close at 2496.7. It also touched its daily upper BB and traded almost to 2530! The intraday rise did push the daily upper BB open, which could signal more upwards movements. The daily MAs and MACD glided higher.

The market has gone quite far since the beginning of the week. It is also options expiration week. So, some profit-taking is understandable, and some volatility is a given as people fight to close out May options. In the afternoon, VIX dropped down to under $17, but, the market had problems keep going higher. I started cashing out positions. At just about one left before the close, I said on the member site:
HappyTrading
Posted May 14, 2008 at 12:05 pm | Permalink (Edit)
VIX
coming back up; be careful.

HappyTrading
Posted May 14, 2008 at 12:30 pm | Permalink (Edit)
I’m going to relax for the rest of the day. lots of expiration manipulations going on. I’m more than 70% cash. Will wait ’til tomorrow.

Happy Evening everyone!

The market was very volatile in the last hour, and, I forced myself to walk away from my monitor screens early and kept lots of cash. The market does still show bullish formations in the major indices. We’ll have to see how VIX deals with the $18 mark (now, a resistance). If VIX gets pushed back down toward $16, we could still see the market forming a new leg up.

As mentioned yesterday, solars seem to have just started a new rally. PBW closed above $22 today, which is very encouraging. FSLR set a new all-time high at $317!! SPWR was very strong and traded above $96 today (This was a $140-$150 stock just last December). CSIQ bested yesterday’s high and set a new all-time high at $45.99. STP jumped above $49 today, as we locked in a trade with a +94% gain:
STP ($83.85)
STPFI, June 45 calls, $6.8, +94.2% (all out).
TSL and YGE were on fire today, both gained over +10% at one point. TSL ended +6.11% higher and YGE retained a +11.71% advance.

Good night and HappyTrading! ™

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