This weekend, in my Market Forecast, I mentioned that "[t]he market might start out the week slowly" and "e could see some more profit-taking in the techs and the miners". Yesterday, we saw profit-taking in techs and miners, and, the market ended flat. Today, techs and miners came back up, and, the market still ended flat. This is what I mean by "starting out the week slowly". After 2 days of trading, SPX is basically flat! If you’re reading my articles, the weekly Market Forecast and Sector Watch articles are the ones that you should not miss.
This morning, TXN raised its forecast for the quarter. This inspired the techs, especially the semiconductors, to rally. TXN ended up +6.32%. Other leaders include: BRCM +5.54%, SNDK +5.52% (we initiated a new trade on SNDK today), and MRVL +14.54 (with an upgrade). Miners also showed strength: X +7.87%; FCX +4.39%; ATI +5.24%; CCJ +3.19%.
In yesterday’s article, I alerted, "BLK closed +3.43% higher, or up $5.62, on BGI talks with Barclay in a $12-$13 billion deal. We initiated a trade in BLK today."
We just locked in overnight profits as high as +209%:
This trade was opened yesterday:
June 08, 2009
07:38 | HappyTrading BLK ($169.20) Bought to Open BDWFX Jun 170 calls, at $4.70
and, we cashed some out today:
June 09, 2009
10:59 | HappyTrading BLK ($183.50) Sold to Close BDWFX Jun 170 calls, at $14.50 +209%
06:55 | HappyTrading BLK ($181.31) Sold to Close BDWFX Jun 170 calls, at $12.80 +172%
We got the day high today on these June 170 calls. These options closed at $13.5. We still hold a small position.
Here are some comments from our "Happy" members on the trade:
Angar June 9, 2009 6:58 AM
BLK – Thanks for great trade happy !
Skymist June 9, 2009 7:20 AM
Caught a bit of that trade on BLK Happy, excellent!
kck June 9, 2009 8:10 AM
thanks for that blk call happy made a bundle
The Dow ended down 1.43 points; SPX added +3.29 points; Nasdaq gained +17.73 points:
Most sectors were up. SOXX (semiconductors) jumped +4.45%. XME (metals and mining) gained +4.73%. USO (oil) added +1.73% while OIH (oil services) advanced +1.99%. PBW (clean energy) rose +2.7% (discussed in the Sector Watch this weekend). GLD (gold) and SLV (silver) were both green. FXI (Chinese ADRs) slid 1.25%.
SPX
SPX added +3.29 points to close at 942.43. The daily MAs were higher while the MACD stayed flat.
Nasdaq
Nasdaq gained +17.73 points to close at 1860.13. Its daily MAs went up. The MACD was flat.
VIX dropped below 28 today before bouncing a bit to close at 28.27. SKF (financial ultrashort ETF) closed under $40 once again. Although most sectors were higher today, SPX only added +3.29 points! Further, the Dow closed in the red! Nasdaq did make a new high for the year. If VIX breaks down below 28, I think we’ll see SPX above 950. Asian market are mostly higher this evening, at the time of this writing. USO (oil) still seems strong, as the dollar looks weak again. Energy sectors could help the market push higher.
Good night and HappyTrading! ™
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