Wang’s Happy Trading

The market started out cheerfully, with techs leading the way. MSFT today said that it would reopen talks to buy YHOO if a new board is elected. YHOO jumped +12%!! BIDU also did well, adding almost $12. AAPL looked strong as well, gaining almost +3%.

But, the financials stayed weak, and, soon dragged the whole market lower. GS sank more than 5%. STI and PRU (both mentioned in the Sector Watch this weekend) broke down further, losing 9.11% and 2.71%, respectively. MA went as low as $243.34, but, bounced back to close at $246.1, down 3%. It still looks like it could hit $240 soon to fill the gap.

In the biotech sector, CELG continued to sail higher, adding +2.7%. It looks like it could go higher from here. Its all-time high is at $75.44 set in October 2007. SVNT went up almost +6% today and could be setting up for a breakout (we have a position in this).

The market saw some violent tugs between the bulls and the bears, swinging from one side to another. The Dow ended down 56.58 points; SPX lost 10.59 points; Nasdaq slid 2.06 points:

VIX added almost +4% to close at 25.78. HGX (housing) was down 2.7% and XLF (financials) tumbled 3.31%. XLE (energy) slipped 2.51% and OIH (oil services) lost 2.33%. FXI (Chinese ADRs) managed pick up +2.21%.

SPX

SPX lost 10.59 points to close at 1252.31. Its daily MAs and MACD continued lower.

Nasdaq

Nasdaq slid 2.06 points to close at 2243.32. Its daily MAs and MACD also went lower.

This market is still weak. It gapped up at the open, but, ended with a loss. Like I’ve saying for a while now, until the financials establish a bottom, it is very difficult for the overall market to find sustainable strength. XLF pushed lower on a new leg down. However, we are also seeing violent swings. So, trades seem to go pretty quickly. I’m still almost 75% in cash; perhaps, it is the safer place to be. Earnings season is going to start to heat up though. There could be some very good opportunities coming. AA, which has been driven down quite a bit in June, reports tomorrow. This could be a mover for the metals and mining sector, as in just 3 days, XME gave up the gains that it had accumulated in the past 2 months! Standing by with cash.

Good night and HappyTrading! ™