The market started the day on a good note and just kept on going higher. A drop in unemployment rolls, as well as in first-time claims for jobless benefits, gave buyers reasons to come back in after yesterday’s slide. Most sectors were participated in the rally. Commodity sectors regained their footings. Financials were quite strong. Goldman Sachs (GS) was upgraded by Bernstein this morning. GS charged higher by +5.15%. Other leaders in the financials include: PNC +8.36%, WFC +4.02%, BAC +5.89%, STT +6.58%.
Techs also showed strength. The usual leaders pushed higher: AAPL +1.98%, RIMM +1.9%, and GOOG +2%. On Tuesday, 6/2, I wrote an article discussing the potential of GOOG pushing higher. Today, GOOG broke out and closed above $440. I enetered June $430 calls yesterday at $9.5 and $10.8. I cashed most of them out today at $15 and $16, for overnight profits as high as +68%:
These June 430 calls closed at $16.1 and traded as high as $16.8. I’m still holding a small position. Above $430, GOOG’s next resistance is $450, although it is starting to look a bit toppy.
The Dow was up +74.96 points; SPX added +10.7 points; Nasdaq gained +24.1 points:
Most sectors closed in the green. XME (metals and mining) led the rally with an +4.48% gain. PBW (clean energy) added +4.47%. XLE (financials) rose +3.58%. USO (oil) bounced almost +4% while OIH (oil services) tacked on +3.11%. GLD (gold) and SLV (silver) both were up. FXI (Chinese ADRs) rose +1.92%.
SPX
SPX added +10.7 points to close at 942.46. Its daily MAs and MACD went higher.
Nasdaq
Nasdaq gained +24.1 points to close at 1850.02. Its daily MAs and MACD curved up.
This was a strong day for the stock market. Nasdaq was especially strong, closing above 1850 and pushing its daily upper BB higher. SPX also had a good showing, but, still not quite 950. VIX barely hung on to 30. SKF (financial ultrashort ETF) closed under $40 and could start a new leg down. Tomorrow is Friday, and, we’ll get more economic data including nonfarm payrolls and unemployment rate. If the data continue to show economic recovery, I think we’ll see SPX push to 950. Be careful at this level though, especially on a Friday. It is certainly good to see the financials drawing buyers back in. XLF (finacials ETF) closed at $12.43. Going above $13 is a bullish sign.
Good night and HappyTrading! ™
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