Wang’s Happy Trading

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The market was mixed for most of the day.  Techs saw some bounces and kept the market indices on the green side.  On the other hand, commodity-related sectors were weak.  Just yesterday, things were the other way around!  The market got weak after lunch, bounced back in the afternoon, and then, slipped to day low into the close!  Another rollercoaster day!

Fertilizers and metals were among the weakest sectors today.  Fertilizers:  POT -10.31%; MOS -9.72%; MON -4.15%; CF -6.72%.  Metals:  CNX -9.99%; MEE -4.67%; BTU -7.63%; RTP -12.91% (down $42.86!); X -5.6%; CLF -6.12%; ATI -8.42%.  POT has been one of the favorite trading stocks in our Trading Room.  People have been playing it both ways, switching sides almost every other day!  Just last Friday, we’re trading calls and locked in a +167% profit in about one hour:

September 19, 2008
07:17 | HappyTrading POT ($168.00) Bought to Open PYPIN Sep 170 calls, at $2.70
08:27 | HappyTrading POT ($176.00) Sold to Close PYPIN Sep 170 calls, at $7.20 +167%

Yesterday, POT traded almost to $185.  Today POT closed just above $161.  A $24 difference!  One of our members, Allan B, seems to have a good feel for POT’s “pulse”:

Allan B September 22, 2008 12:58 PM
POT Oct 175 puts…PYPVO…9.5 got filled while out….

Allan B September 23, 2008 7:51 AM
POT Oct 175 puts…PYPVO…out 14.20….in.9.5

Allan B September 23, 2008 10:19 AM
POT…hit 163 target. if it bounces to 170, will hawk some puts.

Frosty Muggs September 23, 2008 11:33 AM
Allan B - Here comes your 170 target on POT. Downside again?

jbcj September 23, 2008 12:43 PM
Allan B
Nice call on POT again, you were right on with it hitting 170 then falling back down.Made a quick $2k on the puts.
thanks
Great trading Allan B!   You can find out more about our Trading Room and other Preimum Services here.

The Dow was down 161.52 points; SPX lost 18.87 points; Nasdaq fell 25.65 points:

VIX went up +5.52%.  Most sectors closed in the red.  XME (metals and mining) lost 5.4%.  OIH was down 4.02%.  XLE (energy) slid 3.3%.  XLF (financials) was flat while HGX (housing) slipped 1.83%.  FXI (Chinese ADRs) fell 2.38%.

SPX

SPX dropped 18.87 points to close at 1188.22.  It closed below the 1200 level.  The MACD and daily MAs went down.

Nasdaq

Nasdaq fell 25.65 points to close at 2153.33.  Its daily MAs and MACD also slipped.

The market looks very weak and could easily test the recent lows from last week.  VIX is back up to almost 36!  The market is not reacting well to the uncertainties on the bailout plan, which the Congress is still brooding over.  After the market, news announced that ”Warren Buffett’s Berkshire Hathaway Inc. is investing at least $5 billion in Goldman Sachs“.  GS shares jumped almost $10 in AH-trading!  This market needs all the good news it can get!  We’ll have to see how the market reacts tomorrow.

Good night and HappyTrading! ™