Yesterday, in my evening post, I said, “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.”
This morning, VIX tried rising, but soon started going back down. Mid-morning, as VIX got close to $17, I said on the member board,
HappyTrading
Posted May 15, 2008 at 8:03 am | Permalink (Edit)
market
could be looking for a broad rally today if VIX goes below $17
As the day went, the market got stronger, as more and more sectors joined in. The market pretty much closed at the high of the day! The Dow closed up +94.28 points; SPX added +14.91 points; and Nasdaq jumped +37.03 points:
Pretty much all green. Commodity-related sectors were strong today: OIH (oil services) +3.27%; XME (metals and mining) +3.38%; GLD (gold) +2.11%; XAU (gold/silver index) +3.88%; GDX (gold miners) +3.42%! Techs showed a lot of strength also: INX2 (Internet) +2.67%; SOX (semiconductors) +2.05%; BTK (biotechs) +0.68%; and SWH (software) +1.23%. PBW (clean energy) added +1.34%. FXI (Chinese ADRs) gained +1.39%.
SPX
SPX added +14.91 points to close at 1423.57. It caught up with its daily upper BB and stuck to it for the close this time! The daily MAs and MACD curved up.
Nasdaq
Nasdaq jumped +37.03 points to close at 2533.73. It also reached its daily upper BB, and further pushed the band upwards, signaling room for more upwards movements.
So, the market has caught up with the daily upper BB! The daily MAs of the major indices still look healthy. The interesting thing today was that while the rally was broad, some of the usual leaders were kind of quiet. For instance, RIMM, GOOG, BIDU, AMZN, AAPL all had modest gains. It would be interesting to see how these get played tomorrow as the last trading day for the May options. These could get pushed up to maximize gains on March calls. VIX closed at $16.3, getting close to that $16 support. It does seem that VIX has picked up some downward momentum, so, we’ll see how it deals with that $16 mark.
The oil service sector (OIH, +3.27) got some positive comments this morning. RIG (+5.57%) and DO (+4.65%) seem to be among the favorites in this sector for our “Happy Community“:
BillBigD
Posted May 15, 2008 at 5:40 am | Permalink (Edit)
Transocean-RIG initiated with a Buy, target $201@UBSW
RIG is UBS’s Top Pick as they believe it is the primary beneficiary of rising deepwater dayrates
Diamond Offshore-DO initiated with a Buy, target $160@UBSW
james
Posted May 15, 2008 at 6:12 am | Permalink (Edit)
BBD,
are you still in RIG from an earlier buy at 145?
RIG chart is looking more interesting with the 10 bumping past the 20 on a 10-day/1-hour chart.
pc
Posted May 15, 2008 at 7:52 am | Permalink (Edit)
RIG Anyone get those poor May 150c at .7 this am? Now 3.90
optiondragon
Posted May 15, 2008 at 8:24 am | Permalink (Edit)
Bought some RIG on the breakout from 152. RIG May 155 calls at .95
obet
Posted May 15, 2008 at 12:53 pm | Permalink (Edit)
Happy, OD and BBD,
Thank you for DRYS, FCX, RIG and DO…
It seems like our members are working together very well, as exclaimed by member angar:
angar
Posted May 15, 2008 at 1:08 pm | Permalink (Edit)
Happy – Thank you.. Thank you.. Thank you !! My gratitudes to you for wonderful [trades] and I consider lucky to be part of our “Happy†community. Happy evening all !
Thank YOU, everyone! And, great trading!
NOV, which we played recently:
5/9/08
sell to close
NOV ($76.8)
NOVFN, June 70 calls, at $9, +34.3% (all out)
NOV ($75.5)
NOVFN, June 70 calls, at $8.2, +22.3% (partially out)
was up about +3% and seems to have a lot more room to go. It also looks like more money is going into metals and mining. XME (+3.38) was also very strong. CLF, RTP, and X all recorded new all-time highs, AGAIN!! ATI had its breakout, up +7.63%. FCX and PCU each added +3.66% and +4.69% respectively. How about some Asian metal plays? PKX jumped almost $12, up +9.02%! PKX traded above $200 last winter, and it closed at $143.9 today. ACH could be another breakout potential to watch.
Good night and HappyTrading! ™
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