Wang’s Happy Trading

The market started day well, especially the mining sector, gapping up on AA’s earnings report late yesterday. But, soon after lunch, things started to turn and VIX started to go up again, as I commented on the member board:
HappyTrading
Posted July 9, 2008 at 9:03 am | Permalink (Edit)
VIX
green. careful…

HappyTrading
Posted July 9, 2008 at 11:05 am | Permalink (Edit)
VIX
went below 23, now shooting up to 24. this could be where things get decided. Market should turn and rally if VIX can’t break 24 and comes back down…and, vice versa.

HappyTrading
Posted July 9, 2008 at 11:21 am | Permalink (Edit)
VIX
almost 24, be careful…

HappyTrading
Posted July 9, 2008 at 11:45 am | Permalink (Edit)
market
looks like things are sliding.

The slide soon picked up speed and accelerated downward into the close. Even among the metals and mining group, things did a U-turn. Most coal miners actually ended in red. Steel plays did a little better, but, gave up big parts of earlier gains. For example, X traded above $170 intraday, but, ended at $158.17; CLF jumped over $110 and came down to $105.78 for the close. On the tech side, GOOG and AAPL both reversed their gains from yesterday, losing 2.34% and 2.95%, respectively.

The financial sector also gave back pretty much everything it earned from yesterday. XLF was down 5.7%. MER tumbled 9.25%; GS fell 3.36%; and, MA gave up 4.87%. CME, which traded above $700 last December, lost another 6.34% today to close at $320.77!! Its competitor, ICE, slumped more than 10% today.

The Dow closed down 236.77 points; SPX fell 29.01 points; and Nasdaq dropped 59.55 points:

VIX jumped almost 9% to close above 25. SOX (semiconductors) led the techs down with a 4.31% loss. INX2 (Internet) dropped 3.19%. XLE (energy) continued to fall, shedding 1.9%. GLD (gold) added +0.7% while SLV (silver) gained +1.62%. FXB (British Pound), FXE (Euro), and FXY (Yen) all closed in the green. FXI (Chinese ADRs) lost 2.04%.

SPX

SPX fell 29.01 points to close at 1244.69. It closed below 1250. Its daily MAs and MACD dropped again.

Nasdaq

Nasdaq slumped 59.55 points to close at 2234.89. It closed below 2250. Its daily MAS and MACD continued lower.

Yesterday, I was not completely comfortable with the rally, but, was encouraged by the rise in the financials. However, today, the financials led the market down again. It was a complete U-turn, with the major indices giving back all of yesterday’s gains, and more! Nasdaq could easily test the March lows from here (March support was at 2200). VIX closed above 25 and could open the door once again for it to shoot up to 30. This market is very jittery right now, with huge intraday swings. So, be very careful, and, remember, “cash” is also a position.

Good night and HappyTrading! ™