Wang’s Happy Trading

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The first thing I said in the Trading Room this morning was:
HappyTrading May 6, 2009 6:47 AM
good morning!

energy stocks and financials
are strong!

The energy and financial stocks just kept on going higher today.  WFC +15.59%, STI +14.99%, PNC +11.93%, and BAC +17.07% all had double-digit percentage gains!  DVN reported better-than-expected earnings this morning.  It stock soared +12%.  APA and HES both continued to sail higher, adding +4.05% and +3.7%, respectively.  We also continued to pick up winning trades:

May 06, 2009
12:27 | HappyTrading DVN ($60.76) Sold to Close DVNEY May 55 calls, at $6.10 +56%
11:41 | HappyTrading RIMM ($77.50) Sold to Close RFYET May 75 calls, at $4.20 +11%
11:32 | HappyTrading RIMM ($78.00) Sold to Close RFYET May 75 calls, at $4.50 +18%
11:27 | HappyTrading STI ($20.00) Sold to Close STIER May 18 calls, at $3.00 +50%
08:23 | HappyTrading DVN ($60.00) Sold to Close DVNEY May 55 calls, at $5.50 +41%

We focused on the energy stocks and financials, playing DVN and STI.  Techs were on the weak side, but, we still managed to identify RIMM as it moved higher.  The Dow was up +101.63 points; SPX gained +15.73 points; Nasdaq added +4.98 points:

GDX (gold miners) and XME (metals and mining) were both strong.  USO (oil) added +4.25% and UNG (natural gas) jumped almost +8%.  XLE (energy) rose +3.88%, while XLF (financials) gained +7.96%.  GLD (gold) and SLV (silver) also went higher.  FXI (Chinese ADRs) advanced +3.3%.

SPX

SPX added +15.73 points to close at 919.53.  Its daily MAs and MACD went up.

Nasdaq

Nasdaq added +4.98 points to close at 1759.1.  Its daily MAs were higher.  The MACD was flat.

Even though the techs were a bit lackluster today, the broader market was strong.  Commodity-related, especialy energy, sectors have been fueling the market’s rise.  Financials continue to be very strong ahead of tomorrow’s stress test results.  A lot of information from the stress test had already been leaked out.  So far, investors seem to like what they hear.  In addition to stocks, oil and gold also went higher today.  It looks like sidelined money has been rolling back into the markets, and, they are just trying to find a place to land!  Both SPX and Nasdaq look healthy and their daily MAs went higher on a steeper slope.  SPX 950 and Nasdaq 1800 are the next resistance levels.

After the market, CSCO beat the estimates on its quarterly results.  Its stock traded +2.5% higher in after-hours.  This may encourage the techs to get back on the rising tracks tomorrow!

Good night and HappyTrading! ™