Wang’s Happy Trading

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The market kept things in the positive territory all day today, with a small slide in the afternoon.  Still, there was no definitive word on the “bailout” plan.  Among the modest gains, some sectors stayed weak.  Fertilizers were mostly down today:  POT -2.86%; CF -4.15%; MON -2.88%.  MOS was able to finished slightly in the green, up $0.27.  Coals were also being sold: BTU -2.45%; ACI -5.97%; CNX -3.52%.  MEE traded incongruently, up +6.22%! 

After the market, RIMM announced earnings that missed the estimates, and saw its shares drop 19%, trading below $80/share!

The Dow was up +196.89 points; SPX added +23.31 points; Nasdaq gained +30.89 points:

VIX closed down 6.73% at 32.82.  Techs were mostly green with INX2 (internet) gaining +1.77%, SOXX (semiconductors) +1.35%, and BTK (biotechs) +1.24%.  USO (oil) and UNG (natural gas) were both higher.  XLE (energy) made a +2.45% gain.  GLD (gold) slide fractionally.  XLF (financials) went up +2.76% while HGX (housing) added +2.9%.  FXI (Chinese ADRs) garnered +2.71%.

SPX

SPX added +23.31 points to close at 1209.18.  It closed above the 1200 level and tested the 10-day MA today.  The MACD turned up.

Nasdaq

Nasdaq gained +30.89 points to close at 2186.57.  It also tested the 10-day MA.  Its MACD went higher.

The market looked like it was anticipating the bailout plan to be approved and announced.  Some investors seemed to be positioning themselves ahead of the news.  VIX dropped below 33.  During the day, President Bush announced that the Congress was close on reaching an agreement; but, as of the time of this writing, a finalized plan has not be declared.  Both SPX and Nasdaq came up to test their respective 10-day MA and closed just under.  We can see that the market is trying to create higher lows.  But, without a “deal” being approved by the Congress, the market is being kept below the daily MAs.  Further, RIMM took a big hit after the market, even though their 2Q earnings went up +72%!  The expectations were simply too high, in my opinion.  The market has been looking forward to this $700 billion plan to help solve the credit crisis.  Without knowing the finalized details, there’s still too much uncertainty and the sentiment bias stays on the bearish side.

Good night and HappyTrading! ™