Wang’s Happy Trading

The market opened down and closed lower! Oil rebounded from the recent drop and traded above $138/barrel intraday. Agriculture stocks were strong. Coals also bounced. Solar plays found some buyers coming back. But, most of the market of pretty dismal.

On the member site today, I commented:
HappyTrading
Posted June 11, 2008 at 10:55 am | Permalink (Edit)
market
SPX hourly chart looks horrible!

And, just before the drop sped up into the close:
HappyTrading
Posted June 11, 2008 at 12:16 pm | Permalink (Edit)
market
if it wants to bounce, it’s got to push very hard; the 15-minute and hourly charts on both SPX and Nasdaq look like they’ve got dowward momentum on their side. This slow dragging back-and-forth only makes the picture look worse. SPX’s gotta jump back above, at least, 1350 to make anything meaningful.

This is why I’ve been staying mostly on the sideline with cash. The Dow was down 205.99 points; SPX dropped 22.95 points; Nasdaq stumbled 54.93 points:

VIX closed above 24. Not good for the market! Techs were weak: SOX (semiconductors) -3.44%; BTK (biotechs) -2.01%; INX2 (Internet) -2.76%, and SWH (software) -1.55%. USO (oil) popped +3.71%, while UNG (natural gas) gained +1.93%. DBA (agricultural commodities) hopped +5.6%. XLF (financials) fell 2.9%, while HGX (housing) tumbled 4.81%. FXI (Chinese ADRs) slid 2.42%.

SPX

SPX lost 22.95 points to close at 1335.49, below the support at 1340. The daily MAs curved deeper into their bearish formation. The MACD was down.

Nasdaq

Nasdaq stumbled 54.93 points to close at 2394.01, below its 2400 support. Its daily MAs started curving down. Its MACD continued lower.

The market’s technicals broke down today. Both SPX and Nasdaq are now on their respective daily lower BBs; and, both closed below major support levels. Financials continued to be very weak, and high-rising oil once again sparks inflation worries. There’s no hurry jumping back into this market, unless we’re playing the downside. Sometimes, running too fast can lead you to a cliff!

Solars saw some buying today. It did seem like some people were trying to draw near-term bottom for this sector. FSLR jumped more than $10 intraday; that’s a $20 rise from yesterday’s low! FSLR closed up $8.04, or +3.28%. ICE seemed to be following CME’s recent fall, losing more than $8, or 6.54%, today. PCX, a coal play, rebounded back above $141 intraday, and settled at $139.99, up +3.62%, for the close. After the market, BUD announced an unsolicited buyout offer from InBev, an all-cash bid of $46 billion, or $65 per share. BUD shares jumped +7.52% in AH trading, at $62.73.

Good night and HappyTrading! ™