Wang’s Happy Trading

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Market shrugged off a string of bad economic news this morning and traded higher in the afternoon.  There were also talks about Treasury considering plans to lower mortgage rates to help the housing market.  The market was still very volatile, changing directions twice before deciding to run higher into the close.  Energy and oil-related stocks were still on the weak side: RIG -2.46%; SLB -3.16%; HES -4.99%.  Miners were also among the losers: CNX -4.12%; CLF -3.74%; MEE -2.42%, RTP -13.82%; FCX -17.28%.  RTP, which traded above $500/share this May (just 6 months ago), is now trading at $67.27!  It was at $150 just a week ago when BHP pulled the buyout bid.  FCX suspended its dividend and lowered its mining outputs. 

The Dow finished higher by +172.6 points; SPX added +21.93 points; Nasdaq gained +42.58 points:

XLF (financials) added +5.17%, while HGX (housing) went up +6.01%.  PBW (clean energy) gained +5.17%.  XME (metals and mining) dropped 3.46% and GDX (gold miners) lost 2.55%.  OIH (oil services) was down 1.59%.  USO (oil) slid 1.17%.  Tech found some strength as SOXX (semiconductors) jumped +6.67%.  FXI (Chinses ADRs) garnered +3.18%.

SPX

SPX added +21.93 points to close at 870.74.  It closed at the 20-day MA.  The MACD went up.

Nasdaq

Nasdaq gained +42.58 points to close at 1492.38, still below 1500.  It did close at the 20-day MA and the MACD was higher.

The market continued to shrug off bad economic news.  The broader market was able to go higher, but, energy and oil-related sectors were still weak.  VIX slid lower slightly, closing just above 60.  SPX and Nasdaq are getting close to the 30-day MA again.  In the recent weeks, every time the market had gotten close to the 30-day MA, we saw sharp declines that prevented the market from establishing a bottom.  After Monday’s sell-off, the 30-day MA is still sloping down.  The market is now back to the 20-day MA.  We’ll have to see what it does with the 30-day MA.  Like I said yesterday, we don’t have a bottom until we see that 30-day MA turn up.

Good night and HappyTrading! ™