Wang’s Happy Trading

The market jumped out the gate this morning. SPX topped 1440 and Nasdaq went above 2550. But, soon after lunch, as VIX hit below the $16 support, profit-taking started. On the member site, I said,
HappyTrading
Posted May 19, 2008 at 10:49 am | Permalink (Edit)
VIX
hitting $16; some profits are being locked in.

We also locked in profits since the morning. I only made one new published trade today, which was on ISRG, and we took partially profits of +25% only 2 hours later. The encouraging thing was that the broader market did manage to close in the green and the Dow closed above 13,000.

The Dow was up +41.36 points; SPX added +1.28 points; and Nasdaq slid 12.76 points:

Most sectors closed flat. SOX (semiconductors) lost 0.79%. GLD (gold) added +0.33% while SLV (silver) gained +0.41%. USO came back up to close in the green again, and OIH (oil services) garnered +0.84%. PBW (clean energy) advanced +0.65%. FXI (Chinese ADRs) went up just $0.21.

SPX

SPX shot up to 1440 this morning and got a little ahead of itself, piercing through the daily upper BB. It came back down to close at 1426.63, up +1.28 points. The daily MAs and MACD went higher.

Nasdaq

Nasdaq slid 12.76 points to close at 2516.09. It went above 2550 intraday, but, could not hold its ground, as profit-takers came in. Its daily MAs went higher and the MACD was flat.

So, the market saw some profit-taking as VIX got below $16. Although VIX closed at $17.01, its daily MAs are still firmly in their bearish formation. On the other hand, the daily MAs of the major indices are healthily in their bullish formation. Another note is that the Dow has not even caught up with its daily upper BB yet, which is within reach. Tomorrow’s actions could be very critical. Some profit-taking is healthy, as the market needed to vent of some steam. If VIX gets pushed back towards $16, the market should continue to rise. Being a little more cautious here is good though, in my opinion.

OIH (oil services) today was very strong. DO, RIG, and SLB continued to charge higher, and I think they have more room to go up. SOLF was up another +20% at one point, trading close to $28/share! LDK broke out today, trading above $42 and cloing at $40, up +7.47% (I took my profits on LDK today.). TSL jumped early and traded as high as $53.5; it closed at $50.1, up +1.15%. STP is reporting earnings on Thursday, 5/22, in the morning. It’ll be interesting to see how the solar plays move leading up to STP’s earnings. After the market, NCTY reported higher-than-expected earnings. Its shares traded up +8.38% in AH.

Good night and HappyTrading! ™