Wang’s Happy Trading

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As Congress brooded over the bail out plan for the credit crisis, the market continued with its wild swings.  The market opened down and continued lower…and lower…and then, lower, until the close.  Financials and techs led the downward slide.  Techs were especially weak, giving back all of the gains from Friday:  GOOG -4.23% (down $19.01); BIDU -7.29% (down $21.12); AMZN -7.49% (down $6.07); AAPL -7% (down $9.86); RIMM -5.41% (down $5.6).  Financials were distressed again:  BAC -8.88%; PRU -9.84%; MA -10.13% (down $22.80); STI -8.99%.

Oil made its biggest one-day jump “ever” today, flying up more than $25/barrel.  Most people attribute today’s huge jump to short-squeeze.

The Dow fell 372.75 points; SPX dropped 47.99 points; Nasdaq tumbled 94.92 points:

VIX went up +5.55%.  USO jumped +6.04% while UNG added +1.6%.  GLD gained +3.72% and SLV (silver) hopped +7.14%.  HGX (housing) lost 8.7%.  XLF (financials) tumbled 8.18%.  As mentioned before, techs were mostly lower, with INX2 (Internet) losing 4.87%.  FXI (Chinese ADRs) dropped 6.25%.  Foreign currencies were mostly higher against the dollar.

SPX

SPX lost 47.99 points to close at 1207.09, just above the 1200 level.  The daily MAs and MACD went down.

Nasdaq

Nasdaq tumbled $94.92 points to close at 2178.98.  It closed below the 2200 level.  Its daily MAs and MACD went lower.

This big drop today does not make the market look good at all.  I thought the market would be on the weak side after a 2-day rise.  But, I did not expect it to give back all of the gains made on Friday.  Both SPX and Nasdaq closed below their respective daily MAs.  VIX shot up higher in the last hour of trading.  This is not good.  The market is in jeopardy again to test the recent lows.  We’ll have to be very careful this week.  The levels to watch again are SPX 1200 and Nasdaq 2200.  Going too far below these levels, the market will likely test the recent lows (SPX 1150; Nasdaq 2100).

Good night and HappyTrading! ™