Wang’s Happy Trading

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

The market opened lower on worse-than-expected home sales data.  It rallied all the way back to green only to sink down into the red just before closing.  Stocks fluctuated throughout the session.  Oil rallied and gold continued to give back some of its recent gains.  Financials traded mixed, with JPM, WFC, and BAC advancing.  FSLR took a 21.81% dive as its profit outlook disappointed investors.  CF jumped +11% after AGU made a $3.6 billion offer to buy CF at $76 per share, a 37 percent premium over the company’s $55.58 closing price Tuesday.  CF closed at $61.77 (still much less than the offered price).  After the market, CRM traded more than +5% higher as its earnings beat the estimates.  FLR reported record earnings and sent its shares up +12.29%.

The market is going through some turbulance as it tries to bounce off the recent lows.  After yesterday’s +4% gain, some volatility is to be expected.  The Dow was down 80.05 points; SPX fell 8.24 points; and, Nasdaq lost 16.4 points:

Most sectors were down, with the exception of SOXX (semiconductors), which rose +3%.  USO (oil) traded +6.38 higher as crude bounced.  Both GLD (gold) and SLV (silver) were lower.  XME (metals and mining) lost 2.45%, but, FCX was very strong today, advancing +4.75%, which allowed us to cash out an FCX trade with +15% gain (11:23 | HappyTrading FCX ($29.60) Sold to Close FCXCF Mar 30 calls, at $2.40 +15%).  MOO was nearly flat, being propped up by more potential mergers in the sector.  FXI (Chinese ADRs) dropped 2.45%.

SPX

SPX fell 8.24 points to close at 764.9.  Its daily MAs and MACD slipped.

Nasdaq

Nasdaq lost 16.4 points to close at 1425.43.  Its daily MAs and MACD were lower.

The +4% gain on the SPX yesterday really didn’t get the market out of the danger zone.  As we can see, SPX’s daily MAs are all pointing downwards and are in a bearish formation.  To start turning the daily MAs, SPX must rise above the resistance level at 800.  The techs are fairing better as Nasdaq is keeping above its support at 1400.  Also, surprisingly, the semiconductors (SOXX) were very strong today.  We have been focusing on SOXX for a few weeks now (see my weekly Sector Watch).  The semiconductors will be very important for the market’s recovery and are very indicative to the strength of the tech sectors.  We stayed mostly in cash today, as the market worked through the turbulance.  We’ll need to see SPX and Nasdaq make higher highs from here to establish the bottom.  SPX got stopped at 780 and Nasdaq at around 1450 today.  These two initial resistance levels (SPX 780; Nasdaq 1450) are very important and should draw more buyers into the market once broken.

Good night and HappyTrading! ™