Wang’s Happy Trading

The overall tone on the market today was weak. But, there were pockets of strong performers with lots of volatility! Early in the morning, I pointed out on the member board:
HappyTrading
Posted June 2, 2008 at 6:35 am | Permalink (Edit)
coals + AGs

“AGs” here means the “agriculture sector”, ie. POT, CF, MOS, MON…etc. We also saw some coals stocks flying! ANR, MEE, CNX, PCX, and ACI all made new all-time highs!

OptionDragon has been hanging on the Sept calls on ANR for couple of weeks now! One of our members, BillBigD finally cashes in on some of his PCX plays (PCX has jumped about $25 in 3 trading sessions!!):
BillBigD
Posted June 2, 2008 at 10:15 am | Permalink (Edit)
PCX- taking some deep in the money calls off

I also cashed some money out on a published CNX trade for a +58.4% gain:
HappyTrading
Posted June 2, 2008 at 8:50 am | Permalink (Edit)
CNX ($103.7)
SDFGT, took some profits at $10.3

These options were purchased just on Friday. They went as high as $10.7, and are bidding at $10.1 right now. Check out OptionDragon’s morning article to find today’s news on coals.

This morning, ACOR announced positive results on its multiple sclerosis drug and saw its stock flying up more than +31.%!! OptionDragon got us into it about 2 weeks ago. Many members are “happy” about catching this train:
james
Posted June 2, 2008 at 6:31 am | Permalink (Edit)
Dragon–
Thank you for ACOR, it’s looking very good at +23% at open.

daniel-san
Posted June 2, 2008 at 12:05 pm | Permalink (Edit)
OD, thanks for those ACOR calls!..

The broader market, however, was weak. The Dow was down 134.5 points; SPX slid 14.71 points; Nasdaq lost 31.13 points:

VIX jumped more than +11%, but, closed under 20. Techs were weak: SOX (semiconductors) -1.42%; INX2 (Internet) -1.9%, SWH (software) -1.73%. Commodities were strong: XME (metals and mining) +2.37%; UNG (natural gas) +1.92%; DBA (agricultural commodities) +3.06%. FXI (Chinese ADRs) finished up $0.79.

SPX

SPX slid 14.71 points to close at 1385.67. It closed below its daily MAs and the MACD went lower.

Nasdaq

Nasdaq lost 31.13 points to close at 2491.53. It closed above its daily MAs, but, its MACD also went lower.

The market seemed to be range-bound right now (SPX 1375-1425; Nasdaq 2450-2550). Nasdaq’s daily chart is still on the healthy side, but, SPX’s picture is not as encouraging. Financials were once again weak, and XLF closed under the support at $24.5. XLF’s daily chart has also developed a new bearish formation with 10- below the 20- below the 30-day MA. However, other sector ETFs continue to show bullish signs. For example, XME (metals and mining), UNG (natural gas), and MOO (agriculture) seem to be ready to break out! So, there are definitely mixed signals in the market right now. It is a “stock-picking” environment. VIX made a jump today, but, closed under 20. We’ll also keep an eye on VIX’s movements.

As I have mentioned before, this year, we’re going to try to post more “educational” articles. Since the market is in a “stock-picking” environment, we’re going to do something a little differently this week. This week, from Monday through Thursday, I’m going to try to make 1 or 2 stock analyses with charts on the member site. I’m calling this week the “HappyTrading Boot Camp“! We’ll try to look at the charts and go into the psychological and technical aspects of trading particular stocks. These analyses will be available only on the member site.

Good night and HappyTrading! ™