Wang’s Happy Trading

The market opened down today, but, immediately bounced higher, cheering the surging consumer confidence!  Personal computer and smartphone stocks were especially strong, including AAPL +6.76%, RIMM +6.55%, and PALM +10.38%, IBM +3.07%, and DELL +2.67%.  Speaking of smartphone stocks, does GOOG count?  Well, it also jumped today, up $10.86, closing above $400. 

This weekend, in my Market Forecast, I wrote, "Although this rally looks to be struggling, I’m not necessarily convinced that it is done."  Well, here we are, the rally is trying to get going again!  Most sectors were higher today.  Energy and commodity sectors also went up after a slow start.  Chinese stocks seemed to be drawing buyers back in as well: SOHU +7.02%, CHINA +9.1%, KONG +16.1%, STP +11.62%, YGE +19.14%!

The Dow ended up +196.17 points; SPX gained +23.33 points; Nasdaq jumped +58.42 points:

Techs led the market higher: SOXX (semiconductors) +3.74%, INX2 (internet) +2.38%, BTK (biotech) +2.33%.  XME (metals and mining) added +4.38%.  USO (oil) continued up +1.22% while OIH (oil services) advanced +3.09%.  PBW (clean energy) rose +4.03%.  FXI (Chinese ADRs) advanced +1.24%.

SPX

SPX gained +23.33 points to close at 910.33.  It closed above its daily MAs.  The MACD flattened.

Nasdaq

Nasdaq jumped +58.42 points to close at 1750.43.  It closed above its daily MAs.  Its MACD turned up.

This was a powerful continuation for the market rally.  Last week, SPX and Nasdaq barely closed above their respective 30-day MAs.  Today, both indices jumped above their daily MAs.  Nasdaq was especially strong, pushing its daily upper BB higher, hinting for more upwards movements.  Most sectors participated in today’s rally.  We’ll be watching the MACD on the market indices.  If the MACD gets a new bullish crossover, this rally should finally break higher and SPX could test 950.  Both SPX and Nasdaq are still within the range that they have been stuck in for the past 3 weeks.  Semiconductor and energy stocks will be crucial for the continuation of this rally.

Good night and HappyTrading! ™