Wang’s Happy Trading

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Market started out the day on a positive note as GS reported “better-than-expected” earnings.  GS posted its first loss, ever, since the firm went public; however, the loss was not as severe as many had feared.  GS shared jumped +14.35% to close at $76.  The market hung around in the positive terroritory and waited for the Fed to announce its decision on interest rates.  This time, the Fed did not disappoint, but instead, surprised the market with an unprecedented move by creating a target range for the funds rate at between 0 and 0.25!  The Fed also further promised that “[it] will employ all available tools to promote the resumption of sustainable economic growth.”  The market rallied to close at its day high!

Financials and commodity-related sectors are very strong.  Fertilizers had a very good day:  POT +11.06%; CF +12.42%; MOS +14.3%; MON +6.73%.  These should have more room to go higher in the coming days.  Gold and silver plays also jumped:  PAAS +13.67%; SLW +16.77%; AEM +9.78%; FCX +10.57%.

In the Trading Room, our members were jumping and cashing out on call plays:
OptionDragon December 16, 2008 7:09 AM
Hawking MOS, MON, GS, GOOG

Allan B December 16, 2008 8:41 AM
late start…but great start…for me. out of my POT calls from last week after hitting my 73ish target. a 1/4 GS call position left. took profits basically because they gapped up nicely…and didn’t want to give any back. since i have Jan GS calls, i’ll hold the remainder for a little while.

still feel there is more to xmas rally. hard to take any new positions until morning gaps filled.

Perry December 16, 2008 9:27 AM
Allan B…still here thanks for the POT call got a bagger out of it

Bagger Vance December 16, 2008 9:28 AM
goog here…call play

HappyTrading December 16, 2008 10:04 AM
CEO
seems to be setting up for another breakout.

HappyTrading December 16, 2008 10:09 AM
LFC
was looking at it too; daily chart is very strong.

Craig December 16, 2008 11:23 AM
Allan, thx for the POT and GS trades. Been back 3 days and booked great gains on your calls! Have a great holidays!

OptionDragon December 16, 2008 12:17 PM
My MS calls exploding……bagger and some, rimm calls exploding bagger and some….

Great “Happy” Trading, everyone!   You can view these comments during the day by joining us in our Trading Room.  You can also get access to our privately published trades and email alerts by subscribing to our services.  Please visit Premium Services for more information.

The Dow closed up +359.61 points; SPX added +44.61 points; Nasdaq jumped +81.55 poins:

Most sectors were green.  SOXX (semiconductors), INX2 (internet), BTK (biotechs), SWH (software) all captured more than +5% gain!  XME (metals and mining) jumped +7.43% (mentioned in my Market Forecast this weekend) and GDX (gold miners) +6.59%.  XLF (financials) hopped +11.18%.  PBW (clean energy) added +5.16%.  MOO (agriculture) advanced +8.70%.  FXI (Chinese ADRs) gained +7.3%.

SPX

SPX added +44.61 points to close at 913.18.  It closed above its daily MAs.  The 10-day MA climbed above the 30-day MA.  The MACD went up.

Nasdaq

Nasdaq jumped +81.55 points to close at 1589.89.  It is just under the 1600 level.  The MACD was higher.

The market has once again closed above the daily MAs.  SPX closed above 900 and Nasdaq is not too far below 1600 (these were the resistance levels that we have been looking at).  The 10-day MA has crosses above the 30-day MA and the 20-day MA has turned up.  The daily upper BB also opened, hinting for more upwards movements.  VIX closed below 55; its next support level is around 44-45.  These are great signals for the market.  Asian markets seem to be ahead of the US market on the recovery process.  The Chinese oil plays are looking really strong (CEO, PTR, SNP).  Tomorrow, we have the oil inventories and the OPEC meeting.  Energy-related sectors should be interesting!

Good night and HappyTrading! ™