Wang’s Happy Trading

The market saw buyers coming back in today as oil fell $4.75! China announced that it will raise gasoline and diesel fuel prices by 16% and 18%, respectively. This news prompted PTR and SNP to capture solid gaines. PTR traded as high as $146.25, but, closed at $140.49, up +4.43%; while SNP shot up to $114.63, and came down slightly to close at $112.42, up +7.73%.

On the other hand, as I said a couple of days ago that “[s]ome of these high flyers may need to do a little breathing soon and let off some steam”, coals and fertilizers finally took a substantial breather. MOS tumbled $9.75, or 6.06%; POT dropped $4.73, or 1.99%; and, CF fell $7.04, 4.16%. PCX led the coals down by losing $9.99, or 6.19%; CNX stumbled $6.93, or 5.91%; and, MEE slid $1.89, or 2.09%. I cashed out a trade on MEE first thing in the morning with a +24.4% overnight gain, as I expressed my concerns to our members on how high these stocks have gone recently:
HappyTrading
Posted June 19, 2008 at 6:35 am | Permalink (Edit)
MEE ($92)
MEEGQ, out at $11.2 (maybe early, but, I’m a little bit timid about how much MEE has gone up)

These options traded as high as $11.7 and closed at $8.8.

As oil continued to drop, the airlines soared! Many of these stocks recorded double-digit gains! Not too difficult, though, considering how much they have fallen in recent months. Among the top gainers were: DAL +17.06%; UAUA +23.82%; CAL +16%; NWA +16.05%. BA also benefitted, advancing +3.08%.

The Dow was up +34.03 ponts; SPX added +5.02 points; Nasdaq jumped +32.35 ponts:

The techs were strong today: INX2 (Internet) +1.96%; SOX (semiconductors) +2.55%; BTK (biotechs) +1.46%; SWH (software) +1.27%. USO (oil) tumbled 3.59% and UNG (natural gas) fell 3.1%. OIH (oil services) slid 1.38%. MOO (agriculture) lost 0.99%. FXI (Chinese ADRs) was flat.

SPX

SPX added +5.02 points to close at 1342.83. It went back above 1340. Its MACD slid.

Nasdaq

Nasdaq jumped +32.35 points to close at 2462.06. It closed above its 10-day MA and touched its 20-day MA. The MACD went higher.

Today’s big drop in the crude price could start to draw a near-term top for oil. USO closed below its 10-day MA today, at $106.91. This weekend in my Sector Watch, I had mentioned that $102.5 is the level that I’m looking at for USO to confirm a near-term top. This week, we saw oil traders taking profits whenever crude oil jumped. Today’s big drop could prompt more oil traders to get out while their profits are still high. This could be just the beginning and it’s good for the overal market. Tomorrow is the last trading day for June options. Airline stocks could be very interesting to watch. Also, as some profits are being taken off the table on coals and fertilizers, solar plays and semiconductors could see some of the money rotating back.

Good night and HappyTrading! ™