Wang’s Happy Trading

Oil prices jumped again! The broader market was pretty much weak all day. This morning, I said on the member board:
HappyTrading
Posted May 20, 2008 at 6:56 am | Permalink (Edit)
good morning.

Market
still weak; VIX at around $18, which is now a resistance. no hurry to act right now.

Commodities related sectors were strong. Oil, natural gas, and metals all went higher, as I said:
HappyTrading
Posted May 20, 2008 at 8:58 am | Permalink (Edit)
UNG/USO
going up strong today; energy stocks are in favor.

GLD
daily upper BB

We took profits on our AEM trade with a +66% gain:
AEM ($72.2)
AEMFM, June 65 calls, at $8.3, +66% (all out)
These options went higher to close at $9!

The Dow was down nearly 200 points; SPX lost 13.23 points; Nasdaq stumbled 23.83 points:

XLF (financials) and HGX (housing) were very weak today, losing 2.33% and 2.36%, respectively. SOX (semiconductors) lost 2.8%. Commodities were hot: USO (oil) +1.46%; UNG (natural gas) +4.45%; GLD (gold) +1.69%; SLV (silver) +4.05%, GDX (gold miners) +2.44%; XME (metals and mining) +1.18%. PBW (clean energy) slid 0.95%. FXI (Chinese ADRs) tumbled 4.12%. FXY (Japanese Yen), FXE (Euro), and FXB (British Pound) all went higher.

SPX

SPX lost 13.23 points to close at 1413.4. It stayed above the 10-day MA. Its MACD flattened.

Nasdaq

Nasdaq stumbled 23.83 points to close at 2492.26. It also managed to close above the 10-day MA. Its MACD was lower.

The market came back up a bit near the close. VIX could not break 18 and got pushed back to close at 17.58. The commodities related sectors are still hot. USO (oil), UNG (natural gas), and XME (metals and mining) all seem to have more room to go higher. GLD (gold) and SLV (silver) are on their way back up. On the other hand, techs have been on the weak side so far this week. Financials have also been very weak. We need to see some strength back into the financials soon. I’ll be watching VIX tomorrow to see how it handles this 17-18 area; still being cautious.

As energy prices keep going higher, OIH (oil services) is also making new all-time highs, at $219.15 today. DO, RIG, and NOV continue to be among the favorites. NOV is looking like it’s ready to take out its all-time high, which is at $82, set back in October last year. NOV closed at $80.87 today, up +2.9% (We initiated a new trade in this today). HES, UPL, APA, DVN, SU, and CLR all made new all-time highs today. I think APA (we initiated a new position in this) and DVN have more room to go higher. SU and CLR have just been amazing. SU has gone up about $30 in 2 weeks and was up another $7.48 today. CLR went up $11.78 today, or +23.07%; this stock is up over +100% since March this year!!

Good night and HappyTrading! ™