Wang’s Happy Trading

Following yesterday’s disappointing news from RIMM and ORCL, the market gapped lower at the open. Oil jumped over $140/barrel and added more pressure on the market. The market accelerated lower into the close, with techs leading the way.

RIMM ended down more than 13%. GOOG lost $22.18, or 4.03% while BIDU gave up $17.33, or 5.22%. Financials were also weak, with GS slipping 4.02%. ATW, mentioned yesterday about a possible breakout, recorded a new all-time high at $115.14, but, ended at $113.53, up +2.61%. Gold and silver were strong. XAU added +4.38%. AEM jumped +7.76% and ABX gained +6.38%.

The Dow lost 358.41 points; SPX dropped 38.82 points; Nasdaq stumbled 79.89 points:

VIX jumped to almost 24, up +13.2%. Most sectors were weak. SOX (semiconductors) lost 4.5%. XLF (financials) made a new 52-week low, falling 3.6%. HGX (housing) slumped 4.74%. GLD (gold) gained +3.65% while SLV (silver) added +2.4%. USO (oil) set a new all-time high at $113.6, jumping +4.26% for the close. UNG (natural gas) went up +3.32%. DBA (agricultural commodities) advanced +3.44%. Foreign currencies traded higher with FXY (Yen) garnering +1.09%. FXI (Chinese ADRs) fell 5.07%.

SPX

SPX lost 38.82 points to close at 1283.15, below the 1300 mark. Its daily MAs and MACD continued lower.

Nasdaq

Nasdaq stumbled 79.89 points to close at 2321.37. It closed below the 2350 support. Its daily MAs and MACD dropped also.

The market got pushed over the cliff today. Money rolled out of the equities market and into pure commodities and foreign currencies. Even commodity-related sectors were weak. XLE (energy), XME (metals and mining), and MOO (agriculture) all closed slightly in the red. In one hard fall, both SPX and Nasdaq penetrated below important supports, 1300 and 2350, respectively. VIX closed at almost 24. Breaking 25, could send VIX to above 30, which would not be good! Although after a fall this sharp, there may be some bottom fishers jumping in. But, tomorrow is Friday, it may be safer to just hold cash over the weekend.

Good night and HappyTrading! ™