Wang’s Happy Trading

from MyHappyTrading.com by HappyTrading! ™

The market was not encouraged by the government rescue solution for AIG; not one bit!  AIG fell more than 45% today to close just above $2/share.  The pre-announcement on MS earnings, which beat the estimates, did not help either.  MS shares flopped 24.22%!  Rest of the financial sector was a mess!  GS traded below $100 today, as low as $97.78; it closed at $114.5, down 13.92%.  MER lost 12.71%.  BAC was down almost 8%.

Gold and related stocks spiked up today, as investors sought to find places to keep their money!  Gold jumped above $870/ounce at one point, up more than $90!  AEM gained more than +10%.  ABX added almost +13%!

Last Friday, in our Trading Room, I said:
HappyTrading September 12, 2008 9:32 AM
DNA/SNDK
2 potential buyout news this weekend; something to think about…

Yesterday, Samsung announced a buyout offer for SNDK at $26/share, but, was rejected by SNDK.  SNDK shares jumped over $22, or more than +40%, at one point.  I closed my SNDK trade today for a +179% profits:

These options closed at $4.55 today.

Bagger Vance bought some puts on AMZN that nearly doubled today:
September 10, 2008
07:15 | Bagger Vance AMZN ($75.00) Bought to Open ZQNVO Oct 75 put, at $3.70

These options closed at $6.4 today.

OptionDragon played some puts on UBS and JPNR:
September 17, 2008
07:31 | OptionDragon JNPR ($24.42) Bought to Open JUXVS Oct 24 put, at $1.20
07:27 | OptionDragon UBS ($14.50) Bought to Open UBSVV Oct 13 put, at $1.40

JUXVS closed at $1.35 and UBSVV closed at $2.4.

The Dow finished down 449.36 points; SPX lost 57.2 points; Nasdaq tumbled 109.05 points:

Pure commodities went up today.  GLD (gold), SLV (silver), USO (oil), UNG (natural gas), DBA (agricultural commodities) were all higher.  Foreign currencies also made their gains.  Most sectors in the stock market were down.  XLF (financials) stumbled 9.6%.  FXI (Chinese ADRs) continued to go lower, down 12.77%

SPX

SPX lost 57.2 points to close at 1156.39.  Its daily MAs and MACD curved lower.

Nasdaq

Nasdaq slumped 109.05 points to close at 2098.85.  Its daily MAs and MACD continued to fall.

The market technicals look horrible!  Both SPX and Nasdaq pierced through their support levels (SPX 1200; Nasdaq 2200), and, in one day, went down to the next tier.  The daily MAs on both indices are now curving down.  VIX shot up to close above 36.  We may again see some bounces tomorrow, as VIX closed way above its daily upper BB.  However, it does seem like the people are shorting into every rally.  So, trade carefully!

Good night and HappyTrading! ™