Wang’s Happy Trading

Yesterday, we were talking about $130 oil! Well, it just got higher today. We’ve also been looking at USO for the past couple of weekends in my weekly Sector Watch, and, we saw that it showed room to go higher. USO closed today at a new all-time high of $108.31, as crude closed at nearly $135/barrel!!

In energy-related plays, yesterday, we talked about NOV being ready to take out its all-time high. OptionDragon had gotten us into June 80 calls yesterday at $4.1:
optiondragon
Posted May 20, 2008 at 9:39 am | Permalink (Edit)
Bought NOV $80.10 June 80 calls at 4.10

NOV jumped out of the gate this morning and set a new all-time high at $86.89! We went ahead and locked in our overnight bagger play!
HappyTrading
Posted May 21, 2008 at 6:51 am | Permalink (Edit)
NOV
overnight bagger! Thanks dragon!!

angar
Posted May 21, 2008 at 6:53 am | Permalink (Edit)
NOV - great trade dragon. Thank you !!

fifi
Posted May 21, 2008 at 7:04 am | Permalink (Edit)
Thank you, Dragon, for NOV.

Those NOV June 80 calls traded as high as $9 today. Congrats, everyone!

Among the energy plays, I also had a personal trade on CEO, which was mentioned on the member site last week. CEO was upgraded yesterday and jumped as high as $206.79 today. I locked profits with $9.5 gain per contract:

Depending on the overall market conditions, CEO could have more room to go up.

The market was doing quite well this morning. VIX was on its way down and tested 17. But, as soon as the Fed minutes came out, the market started cashing in. Things dropped “fast and furious”. GOOG tanked $25 in a matter of an hour! Good thing we locked in profits early during the day. I also had to cut the losses on MOS, BIDU, and MEE. As I’ve been saying for the past couple of days, “It’s good to be a little more cautious!”

The Dow was down 227.49 points; SPX lost 22.69 points; Nasdaq tumbled 43.99 points:

VIX closed above 18, up +5.75%. Techs continued to be weak. XLF (financials) lost another 2.55%, while HGX (housing) stumbled 4.28%. USO (oil) and UNG (natural gas) were very strong, gaining +3.84% and +2.47%, repectively. GLD (gold) and SLV (silver) also continued higher. FXI (Chinese ADRs) finished flat. FXY (Japanese Yen), FXE (Euro), and FXB (British Pound) were higher again, as well.

SPX

SPX lost 22.69 points to close at 1390.71. It came down to close at its 30-day MA. The MACD (difference) went negative.

Nasdaq

Nasdaq tumbled 43.99 points to close at 2448.27. It closed below its 20-day MA. The MACD was lower.

As the market started to drop, I said on the member site today:
HappyTrading
Posted May 21, 2008 at 11:16 am | Permalink (Edit)
market
geez, walked away for an hour, VIX challenging 18 again! not good!

and later just before the close, I said:
HappyTrading
Posted May 21, 2008 at 12:50 pm | Permalink (Edit)
market
looks like some short-covering induced buying coming in at the end of the market. I think I’ll keep cash and wait for mid or late morning tomorrow, if the market looks strong. We need to see the financials finding a bottom.

So, the drop that started on Monday afternoon has changed the market tone, for now. We also saw some money rotation, coming out of equities and perhaps into gold and silver (and other precious metals) and currencies. The financials have been dropping for about 2 weeks now, and, we’ll need to see them finding a bottom to feel more comfortable. SPX and Nasdaq still have daily MAs in their bullish formation, while the Dow is not doing as well, closing at its daily lower BB. I’m more than 85% in cash and will choose my trades very carefully for the next week or so. VIX closed above 18, but should find some resistance between 19-20. Let’s see how the market does for the rest of the week.

This morning, SOLF reported stellar earnings and saw its shares jump above $29! It ended the day at $26.5, up +5%. On the other hand, FSLR got downgraded and its shares got pummeled almost $20! Rest of the solar sector traded mixed, with LDK up +7.77%, TSL up +2.36%, SPWR down 3.44%, and CSIQ down 2.95%. STP, up +1.98%, will report its earnings tomorrow morning. If it reports well, this sector does have room to go up more!

Good night and HappyTrading! ™