Wang’s Happy Trading

The market was very volatile today. It opened down, but, came up into the green, only to fade away and close in the red. Commodities were weak, as dollar saw strength. Gold traded below $870/ounce and oil dropped under $132/barrel. Steels and coals retreated as well.

The Dow ended up +9.44 points; SPX slid just 3.32 points; Nasdaq lost 10.52 points:

Most sectors were down, but, HGX (housing) and XLF (financials) closed in the green! Can the financials establish a bottom here? USO (oil) lost 1.86%, while OIH (oil services) gave up 2.48%. XME (metals and mining) stumbled 3.34%. FXI (Chinese ADRs) lost another 2.6%.

SPX

SPX slid 3.32 points to close at 1358.44. It closed below 1360. The daily MAs curved lower into their new bearish formation. The MACD was lower also.

Nasdaq

Nasdaq lost 10.52 points to close at 2448.94. It touched the daily lower BB, but bounced back. Its MACD went lower.

The market is really erratic right now, and it is still lacking strength. It was good to see XLF closing in the green even though LEH received more negative comments from analysts, including Wachovia and Credit Suisse. Both energy and metals were weak today. At one point, SPX turned green and Nasdaq was green, but, energy and metals were near their lowest of the day. Later, energy and metals came back up a bit, and, SPX actually went lower to close in the red! Is more money being rotated into techs? I think so. VIX jumped above 24 today; it came back down to close at 23.18. The market is fighting to make a bounce, but, it seems that the downward pressure is still there. I think staying in cash is still my preferred position right now.

As mentioned before, gold traded lower today. GLD closed be $86 again. It might see more downside from here. Steels finally took a breather. X was down 4.28%, while RTP lost more than $21! Coals were weak also. CNX traded below $100, intraday, from yesterday’s close above $108; but, it came back to close at $101.93, down 5.64%. After unveiling its new 3G iPhone yesterday, AAPL closed up more than $4, up +2.22%!

Good night and HappyTrading! ™