Wang’s Happy Trading

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The market started the day down, but climbed higher.  Just when it made it into the green, it faded again.  It looked like people were locking in profits.  But, there were also people buying on the dips.  Thus, the market closed slightly lower.  Oil continued to fall, even though OPEC announced a cut of 2.2 million barrels a day in production.  Solars and gold plays went higher again, and we got them both (see the trades here).  Agriculture plays kept their strength: POT +4.15%; CF +3.22%; MOS +3.36%; MON +0.88%.  Biotechs also looked like they could go up more: DNA +1.5%; AMGN -1.62%; GENZ -1.82%; CELG +0.59%.  Even though the biotechs had mixed performances today, I think this group is beginning to attract buyers’ attention.

The Dow ended down 99.80 points; SPX fell 8.76 points; Nasdaq lost 10.58 points:

BTK (biotechs) closed +1.15 higher.  XME (metals and mining) added another +3.81% (mentioned in my Sector Watch this weekend).  PBW (clean energy) gained +3.04%.  MOO (agriculture) was also among the winners, up +1.77%.  USO (oil) dropped 4.47% while UNG (natural gas) slipped 2.4%.  SLV (silver) and GLD (gold) were both higher.  FXI (Chinese ADRs) gave up 1.32%.

SPX

SPX fell 10.58 points to close at 904.42.  It stayed above the 900 level.  The MACD was up.

Nasdaq

Nasdaq lost 10.58 points to close at 1579.31.  The 10-day MA continued higher and the 20-day MA turned up.  Its MACD was up slightly.

The market took some time to let off some steam.  It still managed to stay above the daily MAs.  Both 10 and 20-day MAs have turned up.  The market seems to be waiting for a chance to go higher and catch the daily upper BB, which should then turn the 30-day MA up.  VIX closed below 50 today and has established a new “bearish” formation (not shown here), but, its hourly chart is bottoming.  We have to be a little more careful here, as people are locking in profits.  SPX 900 will be an important support level.  Remember, this is also the options expiration week.  So, we could start to see some expiration manuevers kicking in starting tomorrow.  As things could be volatile, we’ll be updating the market movements in our Trading Room.

Good night and HappyTrading! ™