Wang's Happy Trading

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The market really has not gone anywhere for about 2 weeks now!  Today, the market started out low, rose higher, but ended basically flat.  The “swine flu fear” certainly seems to add to the confusion, making investors more cautious and nervous at the same time.  A surprise jump in consumer confidence helped to draw some buyers in.  IBM further helped the market by raising its dividend and adding $3 billion to its stock buyback program.  IBM shares traded +2% higher.  DNDN saw some wild trading today (high at $25, low at $7) as it released new data on its prostate cancer vaccine, Provenge.  The new results were very good, extending survival in patients in the last stages of the disease by a median of 4.1 months.  Now, DNDN awaits for FDA’s decision on the “vaccine”.  DNDN shares traded back up to $25.74 in after-hours. 

After AXP’s better-than-expected quarterly results last week, investors now look towards V and MA.  V reports after the market tomorrow.  MA reports before the market on Friday.  V gained +3.13% today and we already locked in some profits:

April 28, 2009
12:59 | HappyTrading V ($61.00) Sold to Close VEL May 60 calls, at $3.30 +30%
09:33 | HappyTrading V ($61.85) Sold to Close VEL May 60 calls, at $3.70 +46%

The Dow was down 8.05 points; SPX slid 2.35 points; Nasdaq lost 5.6 points:

Most sectors were slightly lower.  BTK (biotechs) stood out with a +2.25% gain as the “swine flu fear” drew attention to biotech companies.  GDX (gold miners) and XME (metals and mining) lost 3.67% and 2.23%, respectively.  XLF (financials) dropped 3.09%.  HGX (housing) was also weak.  FXI (Chinese ADRs) slipped 1.1%.

SPX

SPX slid 2.35 points to close at 855.16, at its 10-day MA.  Its daily MAs were slight higher.  The MACD was flat.

Nasdaq

Nasdaq lost 5.6 points to close at 1673.81.  Its daily MAs went up, but the MACD stayed flat.

The market continues to go through consolidation.  As mentioned before, the “swine flue fear” is also adding to the uncertainty on the market.  Further, the “stress test” results on banks are prompting investors to keep cash on the sideline.  Tomorrow, we’ll get the GDP report and Fed’s rate decision.  It looks like investors chose to wait another day before deciding where to push the market next.  Both SPX and Nasdaq managed to stay just above their 10-day MAs.  But, to break higher, the market must push beyond the recent resistance levels: SPX 875 and Nasdaq 1700.

Good night and HappyTrading! ™