Wang’s Happy Trading

from MyHappyTrading.com by HappyTrading! ™ Sign up for FREE membership!

More concerns about a global, economic slowdown continued to pressure the markets.  In 2 days, the markets gave back a whole week’s gain.  Pretty much all sectors were down.  The financials and solar stocks were once again among the big losers: CSIQ -22.79%; STP -26.48%; ENER -12.12%; LDK -11.65%; GS -7.67%; V -8.75%; MA -8.06%; PRU -16.61%; WFC -9.19%.  Just 2 days ago, MA was trading above $170 on good earnings.  It closed barely above $143 today!

The Dow was down 443.48 points; SPX lost 47.89 points; Nasdaq fell 72.94 points:

VIX closed at 63.68, above 60, again!  XME (metals and mining) lost 11.44%.  OIH (oil services) fell 6.67%, while USO (oil) continued 6.85% lower.  XLE (energy) dropped 6.02%.  PBW (clean energy) tumbled another 7.73%.  MOO (agriculture) slumped 8.57%.  FXI (Chinese ADRs) was down 7.95%.

SPX

SPX lost 47.89 points to close at 904.88, just above the 900 level.  The MACD went lower.

Nasdaq

Nasdaq fell 72.94 points to close at 1608.7.  It closed below the 1650 level.  The MACD flattened.

The selling in the past 2 days has just been incredible.  It seemed like people have been quick to lock in the profits accummulated last week.  The selling, however, seemed to have been forced.  Both SPX and Nasdaq closed below the 10-day MA, which is not a positive sign.  Nasdaq is back down below the 1650 support, while SPX barely held 900!  The intraday charts on VIX went from bottoming out to “maxing” out in just 2 days!  This is also perhaps due to the anticipation of really bad unemployment numbers tomorrow.  Since the VIX is maxing out on the intraday charts, we should see some bounces.  But, the selling has been so severe that the bounces will be met by lots of resistances.  To clear out of this 2-day mess, the market needs to go back above the 20-day MA, at least (SPX 950; Nasdaq 1700); and, VIX needs to go back below 60.  If the market goes lower tomorrow, we’re likely to see the bottom tested again (SPX 850; Nasdaq 1500).

Good night and HappyTrading! ™