Wang’s Happy Trading

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The market was very weak today, starting with bad retail numbers.  More problems in the financials sector kept extra pressure on the market.  C tumbled more than 23%, closing at $4.53.  BAC lost 4.23% and fell below $10/share after the market as reports stated that the company could be looking for more government aid.  GS traded lower again, falling from above $90 to now $75 in just one week.  AAPL dropped more than 7% after-hours, in addition to the 2.71% loss during the regular session as CEO Steve Jobs announced a leave of absence from his position until June 2009 due to health reasons.  After the market, FRX and CYPB received FDA approval for their product Savella, for the Management of Fibromyalgia.  FRX jumped +13.5% and CYPB charged up more than +64% on the news!

The Dow was down 248.42 points; SPX lost 29.17 points; Nasdaq fell 56.82 points:

Most sectors were in the red.  XLF (financials) slumped 5.77%.  Commodities were very weak: XME (metals and mining) -7.61%; GDX (gold miners) -4.47%; OIH (oil services) -5.56%; XLE (energy) -4.78%; UNG (natural gas) -4.68%; USO (oil) -1.92%.  FXI (Chinese ADRs) continued lower, losing another 2.7%.

SPX

SPX fell 29.17 points to close at 842.62.  It has fallen once again to the daily lower BB.  The MACD curved down.

Nasdaq

Nasdaq dropped 56.82 points to close at 1489.64, just above its daily lower BB.  The 10-day MA has begun to curve down.  Its MACD went lower.

The market is once again in a very vulnerable position.  Today’s big drop (more than 3%!) pushed both SPX and Nasdaq to their daily lower BB.  The MACDs are showing new “bearish” crossovers.  The 10-day MAs are curving down, while 20-day and 30-day MAs are holding flat.  Perhaps there’s still a flicker of hope ahead of Obama’s inauguration next week?  AAPL’s latest news on CEO Jobs will likely put more pressure on the market tomorrow.  VIX jumped back up above 50 during the day and closed just above 49.  We could see the bottom tested soon.  Both SPX and Nasdaq broke below their respective support levels:  SPX 850 and Nasdaq 1500.  The next supports are: SPX 800 and Nasdaq 1400.  The market is still extremely volatile, so remember to take profits on either side of the trading and don’t leave them on the table for too long!

Good night and HappyTrading! ™