Wang’s Happy Trading

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The market had another big, down day, led by the commodity sectors.  The agriculture stocks too a huge tumble after an earnings miss by MOS yesterday.  MOS itself lost almost 1/2 of its value, down 41.27%!!  POT lost nearly 27%; CF was down 34.57%; MON fell 16.18%.  Gold and silver were both down big.  Metals stocks got hit too:  CLF -20.95%; AEM -16.62%; MEE -19.31%; X -10.63%.

The Dow was down 348.22 points; SPX fell 46.78 points; Nasdaq lost 92.68 points:

VIX jumped +13.69%.  Most sectors were lower.  Techs were weak, with INX2 (Internet) losing 5.54%.  XME (metals and mining) dropped 15.83%, while GDX (gold miners) fell 14.27%.  MOO (agriculture) slumped 16.8%.  GLD (gold) lost 4.23% and SLV (silver) was down 12.41%.  FXI (Chinese ADRs) slipped 4.5%.

SPX

SPX lost 46.78 points to close at 1114.28.  It has caught up with its daily lower BB again.  The daily MAs and MACD dropped.

Nasdaq

Nasdaq fell 92.68 points to close at 1976.72, below the 2000 level, again!.  Its daily MAs and MACD went lower.

It seemed like there were just no buyers today ahead of House’s decision on the economic rescue plan.  Investors were further discouraged by more bad news on the economy.  The bottom fell out of the commodity-related sectors today.  Agriculture, mining, and metals stocks were especially weak, and could have even more falling to do.  Oil, gold, equities were all down today.  This one-week delay on the economic rescue plan seemed to have done even more damage, especially on the confidence of the U.S. economy.  VIX seems to be heading toward that 50 level.  We also have job reports in the morning, which is probably not good.  So, the market could open lower, and, we’ll have to see how the market reacts to the decision by Congress on the rescue plan.  On a lighter note, we cashed out on more trades and held cash to see what tomorrow brings:

Good night and HappyTrading! ™