Wang’s Happy Trading

The overall market was very weak in the morning. Then, after lunch, things started to bounce. AAPL and RIMM led the techs. AAPL added +4.32% while RIMM garnered +5.45%. The biotechs were strong today. CELG jumped +8.44%, or $5.39, as SuperGen Inc, a competitor, drug trial failed. DNA, mentioned here yesterday, also broke out with a +3.5% gain. AMGN, likewise, added +3.14%. BIIB bounced +6.17% on no apparent news.

In energy-related sectors, DVN continued to rise, gaining $2.84, or +2.36%. APA went up more than $3 and could be setting up for a breakout. SLB broke out today to close just under $110, up $2.43. It could be looking to challenge its all-time high of $114.84 set back in October 2007. NOV (we started a new position in this) added $1.71 and could be heading for a new leg up. FLR bounced back also, advancing $5.33, or +2.86%. GMXR continued to set new all-time highs, jumping more than +7% and trading almost to $80! CHK went up +2.12% and could have more room to go.

The Dow closed up +32.25 points; SPX added +4.91 points; Nasdaq gained +11.99 points:

VIX went above 25 today, but, came down to close at 23.65, down 1.25%. XLF managed to bounce back from under $20 to close up +0.3% at $20.32. BTK (biotechs) advanced +1.45%. OIH (oil services) garnered +0.96%. SLV (silver) went up +3.69% and GLD (gold) added +1.38%. FXI (Chinese ADRs) ended down just 0.51%.

SPX

SPX added +4.91 points to close at 1284.91, above the 1280 level. Its daily MAs and MACD slid, but, the MACD difference (blue bars) continued higher.

Nasdaq

Nasdaq gained +11.99 points to close at 2304.97. It closed above 2300. Its MACD difference also rose.

The market was very weak in the morning. But, when XLF went below $20, things started to bounce. This is very interesting, as I pointed out this weekend, in my Sector Watch, that this $20 level could finally provide support for XLF. Both SPX and Nasdaq bounced to close above their respective support levels (SPX: 1280; Nasdaq: 2300). We’ll have to see if the market can continue this rally tomorrow. The recently broken supports could become resistance levels. For SPX, it would be 1300; and, for Nasdaq, it is 2350.

Good night and HappyTrading! ™