Last night, in my article, I said that "we might see some volatility in the morning as the market fights around this pivot point." Indeed, the market opened lower, but, quickly bounced back. Then, it spent most of the morning and early afternoon fluctuating around the flatline. However, it managed to closed just in the green.
Financials and techs stayed strong. GOOG opened above $500 and didn’t look back. It closed at $517.54, up +3.77%. We cashed the rest of our GOOG 500 calls out in the morning:
October 07, 2009
08:54 | HappyTrading GOOG ($504.80) Sold to Close GOPJO Oct 500 calls, at $17.50 +75%
07:55 | HappyTrading GOOG ($502.80) Sold to Close GOPJO Oct 500 calls, at $16.00 +60%
I had a meeting this morning, so I cashed this position out before I left. When I returned, GOOG had jumped above $510!!. We then traded the 420 and 430 calls in the Trading Room, as quick day trades:
HappyTrading October 7, 2009 11:47 AM
GOOG
$513! just scalped another $1.3 on the 520s.. looks like it’s going higher…
Skymist October 7, 2009 12:05 PM
I did the same on GOOG 520s, in at 10.60, out at 12.60. Nice.
GOOG just kept on going all the way until the market close. Eventually, the 500 calls closed at $26 and the 520 calls closed at $14.7!!
BIDU also made a new 52-week high, trading above $414. It closed up +3.19% at $413.8. Bagger Vance has been on the BIDU Oct 420 calls, which went up +91.9% today! AAPL just kept on going higher, also a new 52-week high. It closed above $190 today.
In the financial sector, big banks were mostly up: GS +1.87% (closed above $190), BAC +2.06%, WFC +2.09%, COF +2.73%. MA and V jumped substantially today. MA gained more than $10, or +5.13% and V added $2.6, up +3.81%. I think both MA and V are heading higher.
The Dow was down 5.67 points; SPX added +2.86 points; Nasdaq gained +6.76 points:
OIH (oil services) was up +2.06%, but, USO (oil) slid 1.59%. Both SLV (silver) and GLD (gold) managed to stay in the green. XME (metals and mining), XLE (energy), and GDX (gold miners) all recorded modest gains. BTK (biotechs) was down 1.09%. FXI (Chinese ADRs) slipped 1.18%.
SPX
SPX added +2.86 points to close at 1057.58. It stayed above its daily MAs. The MACD was flat.
Nasdaq
Nasdaq added +6.76 points to close at 2110.33. It closed above its 10-day MAs. The MACd flattened.
I have been talking about the VIX 25 level being important to give buyers more confidence. Today, even though the market was flat for most of the day, once VIX fell below 25, buyers stayed in, and, even drove the market back into the green for the close. Both SPX and Nasdaq finished above their daily MAs. This is a bullish sign. After the market, AA reported a surprising profit for the 3rd quarter and saw its shares trading up +5.63% in after-hours. This bodes well for the commodity sectors tomorrow. We do have more jobs data (Initial and Continuing Jobless Claims) in the morning as well. So, we’ll have to pay some attention to those. VIX might test 25 again tomorrow. But, if 25 has become a resistance on VIX, the market should push higher.
Good night and HappyTrading! ™
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