Wang’s Happy Trading

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The market was strong in the morning, but, soon faded into the red.  However, in the last hour, the market bounced and was able to close in the green.  Energy and oil stocks were strong today: DO +14.51%; RIG +4.27%; NOV +9.4%; SLB +4.62%; DVN +4.73%; HES +9.89%; APA +5.53%.

In the Trading Room, I commented today:
HappyTrading October 23, 2008 11:14 AM
VIX 80
if the intraday charts top out, I think there will be buyers.

HappyTrading October 23, 2008 11:16 AM
VIX
15-minute starting to show “toppiness”!

HappyTrading October 23, 2008 11:26 AM
eager buyers not waiting for VIX 80; 79.43 close enough?

HappyTrading October 23, 2008 11:33 AM
market
if it swings, I say we get the market indices back above support levels. That means SPX above 900.

It actually didn’t quite look like SPX was going to make it.  Then, in the last 15 minutes, SPX jumped more than 10 points to finish above 900.  The Dow jumped more than 400 points in the last hour from about 8250 to almost 8700!  Nasdaq was not quite as strong and finished down 11.84 points:

Tech sectors were mostly red.  USO (oil) bounced more than +3%.  XLE (energy) added +5.32%. OIH (oil services) jumped +5.12%.  GLD (gold) was still weak, down 1.48%.  UNG (natural gas) slipped another 4.99%.  FXI (Chinese ADRs) managed a slight gain.

SPX

SPX added +11.33 points to close at 908.11.  It closed above the 900 level.  The 10-day MA and MACD flattened.

Nasdaq

Nasdaq lost 11.84 points to close at 1603.91.  It is still below 1650.  The MACD was slightly down.

The market was certainly volatile today.  VIX went almost to 80 and closed at 67.80; it is still high.  The encouraging thing was that the market made a big effort to close above the support level, although Nasdaq did not quite make it.  It is still uncertain if the bottom is in.  This support level at 900 for SPX seems to be barely hanging on.  The MACD is still having a hard time to establish a bullish crossover.  We’ll have to see how the market trades in the next few sessions.  Getting and staying above the 10-day MA will be very important.

Good night and HappyTrading! ™