Wang’s Happy Trading

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The market stayed pretty much flat, as the Congress continued to discuss with Secretary Paulson and Chairman Bernanke on the “bailout” plan.  It seems many traders/investors are staying on the sideline, watching the Congressional testimony over the plan, anticipating any new developments.  GS jumped $10, to $135, yesterday after the market on the news that Buffet’s Bershire is investing at least $5 billion in the company.  This morning, GS opened at only $128 and went down to $126.  Eventually, GS came back up and closed at $133.  It is trading lower now in AH at about $130.  The market is so nervous right now, not even Warren Buffet was able to lend some confidence.  It seems that people are quick to lock in profits in either direction.

Solar stocks came into focus today as the US Senate voted to continue tax breaks worth $18 billion for renewable energy sources, including a generous eight-year extension for solar.  FSLR traded nearly at $230, jumping nearly $20.  FSLR retreated in the afternoon to close at $221.8, up +5.17%.  SPWR (we have a published position in this) went up as high as $98.6, but, closed at $93.3, up +6.62%.  ENER hopped +12.98%.  TSL gained +5.84%.  STP advanced +4.38%.

The Dow was down 29 points; SPX lost 2.35 points; Nasdaq added +2.35 points:

Most sectors were flat.  Techs managed to stay on the green side, with SOXX (semiconductors) adding +1.05%.  XME (metals and mining) lost 1.91%.  USO was down 1.47% while UNG dropped 3.57%.  GLD (gold) lost 1.82%, but, GDX (gold miners) went up fractionally.  XLF (financials) slid 1.12%.  FXI (Chinese ADRs) was higher by +1.26%.

SPX

SPX lost 2.35 points to close at 1185.87, below the 1200 level.  The daily MAs and MACD slid.

Nasdaq

Nasdaq added +2.35 points to close at 2155.68.  Its daily MAs and MACD continued to slide.

The major market indices still don’t look very healthy.  VIX stayed above 35.  Every recent rally has been met with quick profit-taking.  As the Congressional hearing goes on over the “bailout” plan, uncertainty on the market seems to have grown.  After the market, NKE announced earnings that beat the estimates.  Its stock went up +4.2% in AH trading.  President Bush is scheduled to address the nation on TV tonight, hopefully to better explain the importance of this $700 billion solution to the credit crisis.  We’ll see happens tomorrow.

Good night and HappyTrading! ™