After the market, AAPL blew away its earnings estimates, making $3.51/share vs. the consensus of $3.11/share.  AAPL shares traded about +3% higher in after-hours.  VMW also gave a stellar report and a rosy guidance going forward.  VMW shares went up +3.56% this evening.  CRUS also reported nicely this morning and traded higher after AAPL’s report.  SNDK and BRCM also saw some additional buying.

The Dow finished up +75.53 points; SPX added +12.23 points; Nasdaq gained +24.26 points:

XME (metals and mining) led the market with a +4.42% jump.  OIH (oil services) was very strong, up +3.38%.  MOO (agriculture) added +2.47%.  XLF (financials) was up +1.06%.  FXI (Chinese ADRs) bounced +2.74%.

SPX

SPX added +12.23 points to close at 1083.48, above the 1080 level.  It also closed above its daily MAs.  Its MACD went up.

Nasdaq

Nasdaq gained +24.26 points to close at 2222.49, above the 2200 level.  It closed above its daily MAs as well, and the MACD went higher.

This market has been churning.  It still seems very undecided and is staying range-bound.  VIX has also been moving up-and-down within a tight range.  It closed below the 24 level today.  It is certainly encouraging to see the market brushing aside IBM and TXN earnings and traded up ahead of AAPL’s earnings.  We’ll have to see if the gains made this evening can translate into continued upwards momentum tomorrow.  WFC and FCX will report tomorrow morning and many more after the market, including NFLX, FFIV, QCOM, and SBUX.  The market has been jerked around by earnings reports, and it will need to clear above SPX 1100 to get any sustainable upwards momentum.

Good night and HappyTrading! ™ (click to see our Facebook Page)

"For the new week, after trying hard, but unsuccessfully, to break away from the recent resistance levels (SPX 1000; Nasdaq 2000), the market technicals are showing slight weakness.  The MACD on both SPX and Nasdaq have turned lower.  Nasdaq closed below its 10-day MA.  SPX closed right at its 10-day MA.  The market may need to get a quick drop for the major indices to test the 20-day MA.  Again, the relationship between the dollar and the commodity sectors will be among the top factors.  Next week is also options expiration week.  So, be ware of expiration manuevers."

Again, things happened exactly as forecasted above.  On Monday, the market took a "quick drop" to visit the 20-day MA.  The dollar jumped and the commodity sectors led the market down.  But, since we wisely went to cash the week before, it really didn’t harm us.  Instead, it gave us a chance to play the downside.  On Tuesday, the market saw some buyers coming back.  The dollar started to fade again.  On Wednesday, the market started weak, gapping lower.  It gave us a chance to cash in on our downside plays, including our FSLR puts.  The market soon reversed and we hopped on the long side again, giving us winning trades on both sides!  On Thursday, the market continued to rally on.  Commodity sectors rallied hard on Friday and pushed the market to a new 2009 high, helping us wrap up another good week!  We waited patiently for the market to show clearer directions and were rewarded (see my article on "Learning When NOT To Trade").  As cautioned on expiration manuevers, the market ended completely differently than how it started, which made some expiring August options very profittable!!

For the week, the Dow was up +184.56 points; SPX added +22.04 points; Nasdaq gained +35.38 points.  Both gold and oil closed higher; the dollar dropped.  At the time of this writing, Asian markets are heading higher.  Let’s see where the market stands after Friday’s close:

SPX (click to enlarge)

On Friday, SPX jumped +18.76 points to close at 1026.13, above its daily upper BB.  Its daily MAs and MACD curved higher.

Nasdaq (click to enlarge)

Nasdaq gained +31.68 points to close at 2020.9, above the 2000 level.  Its daily MAs and MACD turned up.

The market certainly closed the week on a strong note.  After two weeks of testing the upper end of the recent trading range, the market did a quick drop and was able to close just above that trading range.  SPX tested its 20-day MA, while Nasdaq tested the 30-day MA.  Both indices closed at a new height since October 2008.  For the new week…

To read the rest of of this article, please subscribe to HappyTrading "Premium Articles" by going to the Premium Services (click here) page.  If you are already a subscriber, please click here: Market Forecast 8/24/09.

June 12, 2009
11:48 | HappyTrading BIDU ($288.70) Sold to Close BDURX Jun 280 puts, at $4.50 +13%
09:54 | HappyTrading BIDU ($287.00) Sold to Close BDURX Jun 280 puts, at $5.20 +30%
07:18 | HappyTrading CEO ($138.40) Sold to Close CEOGI Jul 145 calls, at $6.00 -25%

June 11, 2009
12:55 | HappyTrading POT ($118.30) Sold to Close PYPFD Jun 120 calls, at $2.70 +6%
11:36 | HappyTrading POT ($118.85) Sold to Close PYPFD Jun 120 calls, at $3.10 +22%
11:23 | HappyTrading POT ($118.72) Sold to Close PYPFD Jun 120 calls, at $3.00 +18%
09:04 | HappyTrading RTP ($210.70) Sold to Close RTPFV Jun 210 calls, at $8.00 +24%

June 10, 2009
10:46 | HappyTrading SOHU ($68.20) Sold to Close UZKFM Jun 65 calls, at $4.10 -13%
10:22 | HappyTrading BLK ($177.90) Sold to Close BDWFX Jun 170 calls, at $9.80 +109%
10:09 | HappyTrading LFC ($58.12) Sold to Close LFCFX Jun 58 calls, at $1.90 -14%

June 09, 2009
12:51 | HappyTrading V ($68.65) Sold to Close VFN Jun 70 calls, at $1.15 -47%
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%

Have a happy weekend everyone!
HappyTrading! ™

“For the new week, the “stress test” results on banks will likely be a mover for the market.  Meanwhile, much attention seems to be shifting towards energy sectors.  Techs are still healthy and Nasdaq should push to perhaps test 1800.  For SPX, 900 is the next resistance.”

Indeed, the stress test results moved the market quite a bit, and the energy sectors kept pushing higher.  On Monday, the market had a broad-based rally and Nasdaq closed above 1670 while SPX went positive for the year!  We locked in some profits on our financial and energy plays!  On Tuesday, the market retreated slightly, but, SPX held above the 900 level.  On Wednesday, energy stocks jumped again and the financials were strong ahead of the stress test results.  We captured more profits from a different set of energy and financials trades.  On the day of the official release of the stress test results, the market locked in profits and waited patiently.  As soon as the results came out, the financial stocks traded higher in after-hours trading, and, I wrote an article to get us ready for Friday’s trading.  There was no surprises on Friday, and the employment data came in better-than-expected!  We finished off another great week, in time for the Mother’s Day Weekend (click here to see the trades)! 

For the week, the Dow was up +362.24 points; SPX jumped +51.71 points; Nasdaq added +19.8 points.  The energy and financial stocks pushed SPX to a 4-month high.  On the other hand, although still making gains, the techs took a backseat in the rally.  Let’s see where the market stands after Friday:

SPX

SPX gained +21.84 points to close at 929.23.  Its daily MAs and MACD were up.

Nasdaq

Nasdaq added +22.76 points to close at 1739.  Its daily MAs went higher, but the MACD was flat.

We started looking at energy sectors 3 weeks ago, predicting that if the market were to go higher, the energy sectors needed to provide the extra fuel.  Back on April 19, I said in the Market Forecast, “Energy stocks have been lagging, but, some sectors are shaping up for possible breakouts!“  In the Sector Watch that weekend, we looked at XLE and OIH as the sectors that were ready to move higher.  Here we are, 3 weeks later, stocks in the energy sectors accelerated in their rally and pushed the market higher.  Financials are still playing a big role.  Techs slowed down a bit, but, are still healthy. 

After breaking above 900 this week, SPX just rode its daily upper BB up and up.  Nasdaq saw substantial profit-taking on Thursday (It looked like big funds cashed out on techs to get ready to push the bank stocks higher!), but, the 10-day MA provided solid support.  Asian markets are a bit mixed this evening, but, still seeing more greens than reds.  For the new week, the market still looks strong and should push higher to test the next resistance levels: SPX 950 and Nasdaq 1800.  Energy sectors have gone up fast.  As the market moves higher, the breadth is getting wider.  This shows that more sidelined money is coming back into the markets.  Techs took a backseat last week, and could get stronger again in the new week.  This week is the options expiration week for May, so, be a little careful if/when SPX reaches 950. 

Sector Watch

XLF (financials)

XLF penetrated above $11 on Monday and continued on to $13.  Some stocks in this sector are beginning to look a bit toppy.  $14 is the next resistance.  Above $14, XLF can take another jump to $16.  We should see some continuation on the buying early in the week, followed by some quick profit-taking in the middle of the week.  We’ll have to monitor how heavy the profit-taking gets.

USO (oil)

USO has made some very impressive climb in the past 2 weeks.  $32.5 is a resistance, above which, it could lead to $35.

XLE (energy)

XLE closed above the resistance at $50 last week.  The chart is still strong, although $52 is another resistance.  Two of our favorites, APA and DVN, have gone quite far.  OXY and HES seem to still have a lot of room to go higher.

MOO (agriculture)

MOO also jumped higher last week and pushed to its highest level since Oct 2008!!  Above $35, MOO could pushed to $40!!  BG recently announced a raise in dividend and has been recovering.  SYG seems to be shaping up for a breakout.  POT and CF are still strong.

Good night and HappyTrading! ™

“For the new week, it looks like the market intends to go higher.  Monday’s actions could set a strong tone for the week.  But, the market will need to break above SPX 800 and Nasdaq 1500 to go higher.  Catching the daily upper BB would bode really well for this rally.”

Indeed, Monday set a strong tone for the week as the market jumped to 1-month high!  The market broke above SPX 800 and Nasdaq 1500.  At the same time, it caught the daily upper BB on both market indices!!  On Tuesday, the market slipped lower in the afternoon, but, we locked profits in the morning.  On Wednesday, the market tried pushing higher in the morning, but, reversed its direction in the afternoon, as people locked more profits.  On Thursday, solars outshined other sectors as the market powered higher in this broad-based rally!  We locked in more profits on FSLR.  Friday was an uneventful day, as the market slid in a tight range going into the weekend.

For the week, the Dow was up 497.8 points; SPX added +47.41 points; Nasdaq gained +87.93 points.  This the 3rd, straight, week of gains that the market has had since reaching a 12-year low in early March!!  It does seem that the market tone is shifting slightly more bullish.  Nasdaq is almost back to even for the year!  But, comparing to just 6 months ago, the market still has a long way to recover.  Let’s see where the market stands:

SPX

On Friday, SPX lost 16.92 points to close at 815.94.  It closed below 830.  The 30-day MA flattened.

Nasdaq

Nasdaq fell 41.8 points to close at 1545.2.  Its daily MAs and MACD all went higher.

SPX had some problems going above 830 last week (SPX 850 was the hard resistance that we were looking at).  On the other hand, Nasdaq got close to 1600.  The 30-day MAs are trying to turn up in both indices.  The 20-day MAs are about to cross above the 30-day MAs, which would create new bullish formations.  For the new week, the market looks tired and may need to breathe a little.  SPX 800 and Nasdaq 1500 should now be supports.  So, we’ll keep our eyes on those levels.  I do not expect the market to come down too far, just yet.  But, we’ll see how SPX 800 and Nasdaq 1500 hold up.  SKF has been holding the support at $90 very well, and, it may need to come up to test the $100-$120 region. 

Sector Watch

XLF (financials)

XLF closed above the $9 level last week.  Its 20-day MA has just crossed above the 30-day MA, forming a new bullish phase.  That $9 should be come a support.  We’ll see how it holds up next week.

SOXX (semiconductors)

SOXX pushed a lot higher last week and really helped the overall market.  It has also established a new bullish formation in its daily MAs.  This is a very important sector to watch as the market recovers.  Staying above that 240 is crucial.  QCOM, BRCM, INTC are some of the leading stocks in this sector.

PBW (clean energy)

PBW jumped more than +15% last week, closing above that $8 level.  We mentioned during the week that the next resistance is at $9.  This sector may become the new leader in energy and should be a good indicator for the overall market strength in the near-term.  The Chinese solar stocks, however, may have gone a bit far and might need to pull back.  FSLR and SPWRA still look quite strong.

OIH (oil services)

Although OIH managed to keep some of its gains this week, it came back to almost even.  It also closed below its 10-day MA.  I think the natural gas stocks along with the oil services will be the market’s weakness.  So, I may be looking for puts in these if the market gets weak.

Notice that I’m looking at a different set of sectors as my indicators for the overall market.  As the market tone shifts, different leaders shall emerge.  We aim to look at the sectors that dominate the market to maximize our profits and chance to to catch high-probability trades.

Hope you’ve had a great weekend!
Good night and HappyTrading! ™

“…as I said on Wednesday, this market may be looking at a near-term bounce.  For the new week, if the market does bounce, it will have to get above the 10-day MA before it can get anywhere.  For SPX, it will be about 725 and for Nasdaq, it is around 1350.”

The market did indeed bounce.  On Monday, it traded slightly lower.  On Tuesday, the financials led the market on a huge rally.  Nasdaq closed above 1350.  This time, the rally did not fade!  On Wednesday, the market traded in a tight range and ended flat.  But, it continued higher on Thursday with the financials getting another boost.  SPX closed above 725!!  The shorts were thwarted yet again on Friday as the market came back up in the afternoon and finished higher.

For the week, the Dow finished up +547.04 points; SPX added +73.17 points; Nasdaq jumped +137.65 points!  It was the strongest week this market has had in 6 months!!  On Friday, after we locked in our profits, the market started to slide.  But, I said, in our Trading Room:

HappyTrading March 13, 2009 7:59 AM
market
sliding now… but, the nature is a bit different than before; it is not dropping like a rock; this perhaps means that the shorts are more cautious now…

Eventually, the market came back up and ended in the green zone!  Let’s see how the market indices look:
SPX

On Friday, SPX gained +5.81 points to close at 756.55.  It closed above its 20-day MA.  The MACD continued up.

Nasdaq

Nasdaq added +5.4 points to close at 1431.5.  It closed just below its 30-day MA.  The MACD went higher.

Both Nasdaq and SPX closed above their respective 20-day MAs, with Nasdaq knocking on its 30-day MA.  Both 10-day MAs have turned higher; both MACDs are showing a new bullish crossover.  VIX is now under 45.  These are good signs for a near-term bottom.  For the new week, Monday is going to be a little tricky.  After running up for 4 days, the intraday charts are getting toppy.  If the market can hang above the 20-day MA (SPX 750; Nasdaq 1400), we might just see the market push this rally higher.  We’ll need to see if the market can let out some steam without losing altitude.  Above the 30-day MA, the resistance levels are at SPX 800 and Nasdaq 1500.  On the downside, the 10-day MA should become the support.

Sector Watch

GLD (gold)

GLD struggled to find support last week.  It finally managed to bounce off of $87.5.  If it goes above the daily MAs (or, $92.5), this chart will once again look bullish.  We’ll keep a close watch on the gold plays as they will give us clues on how funds are being balanced between the perceived safe havens and the oversold stocks.

XLF (financials)

XLF jumped +30% last week, from $6 to $8!!  It closed above its 30-day MA, and the 10-day MA has flattened.  It looks like it has room to go higher.  But, perhaps it needs to take a breather first?  Many of the big financials stocks are showing very toppy intraday charts, including GS, BAC, JPM, and MS.

USO (oil)

While the stock market rallied, USO ended flat (just slightly lower).  But, this chart is trying to turn up!  The 10-day MA has already gone above the 30-day MA.  It closed just above the support at $27.5.  If USO goes higher, the energy sectors should once again benefit.  This could help the broader market stay afloat!

SOXX (semiconductors)

I have been saying for a month now that the semiconductors will be very important for the recovery of the stock market.  Last week, SOXX really showed tremendous strength.  It has caught up with its daily upper BB and the MACD has crossed higher.  Both BRCM and QCOM have been very strong.  We’ll continue to monitor SOXX as it shapes Nasdaq.  SOXX has been trapped between 240 and 200 for 6 months now.  SOXX breaking above 240 could really change the tone on the market.

Good night and HappyTrading! ™

Last weekend, in my Market Forecast, I said,

“For the new week, the market is on very shaky grounds.  The market indices have been sliding lower on their daily lower BBs.  The daily MAs and MACD have turned lower.  All eyes will once again be focused on the financials, which slipped to new lows last week.  Unless we get positive development and infuses some confidence back into the financials, it will be difficult for the market to find strength.”

The market was very volatile.  And, in the end, the selling pressure was just too great to overcome.  The market indeed slid lower.  During the week, we talked about the importance of the resistance levels for SPX and Nasdaq (SPX 780; Nasdaq 1450).  The market tried to break above, but, broke down on Thursday.  We also saw biotechs and health cares drop precipitously, as Obama’s budget plan may exert some pressure on these sectors. 

The Dow finished the week down 302.74 points.  SPX lost 34.96 points.  Nasdaq dropped 63.39 points.  We wrapped up the month in flying colors though, as we continue to adjust our trading strategies to fit the flow of this volatile market.

Let’s see where the markets stand:
SPX

On Friday, SPX fell 17.74 point to close at 735.09.  Its daily MAs and MACD continued to go lower.

Nasdaq

Nasdaq lost 13.63 points to close at 1377.84.  Its daily MAs developed a new bearish formation.  Its MACD went lower.

Both SPX and Nasdaq broke down last Friday.  SPX could not penetrate above 780 and Nasdaq finally broke below 1400.  Asian markets are trading substantially lower this evening, as more distressing news on the global economy and financial institutions were released, including AIG receiving up to another $30 billion from Fed.  For the new week…

To read the rest of of this article, please subscribe to HappyTrading “Premium Articles” by going to the Premium Services page.  If you are already a subscriber, please click here: Market Forecast 3/2/09.

This market has been very volatile, to say the least.  It has been trapped in a tight trading range since November of 2007, and is in the process of testing that November bottom right now.  Fundamentals are very important.  But, in this volatile market environment, technical analysis is “indispensable”.

Today, we were able to profit from the market’s volatility and made money on both the “call” side and the “put” side on two separate trades.  We did this with the help of the charts (technical analysis) and would like to share what we saw in the charts with our readers. 

First, the “put” trade, on a day when SP500 gained +4%!!  Yesterday, we got into ESI puts:
February 23, 2009
07:35 | HappyTrading ESI ($113.30) Bought to Open ESIOB Feb 110 calls, at $6.60

Today, while the stock market was rallying, ESI (and, other education stocks) experienced heavy selling pressure, as I mentioned in our Trade Room that big funds appeared to be dumping education stocks.  We were able to cash this trade out at +21% gain:
February 24, 2009
10:15 | HappyTrading ESI ($110.30) Sold to Close ESIOB Mar 110 put, at $8.00 +21%

These options traded as high as $8.05 and closed at $6.8.  This morning, ESI was trading higher, as the company raised its 2009 outlook.  In the recent months, while the broader market was having a hard time going anywhere, some of the education stocks, including ESI, have been making new all-time highs.  So, what did we see that prompted us to make this trade?  First of all, some of these education stocks have got up so much, they have begun to show signs of being overbought!  Now, let’s take a look at the recent trading on ESI’s daily chart:

ESI (3-month Daily Chart)

In early February, ESI topped $130 and started trading sideways.  It then took a big drop, all the way down to $115.  On the chart, we see that:
1) the 10-day MA (the “red” curve) started to turn lower

Last Thursday, ESI went below $104 on very high volume (partially due to options expiration maneuvers) and,
2) the 10-day MA crossed below the 20-day MA (the “cyan” curve).  This comfirmed that the top had been reached and the stock is heading lower, as the bullish formation no longer holds.  (Note: a bullish formation is when the 10-day MA is above the 20-day MA, and both are above the 30-day MA)

3) Further, we see that although the stock tried to bounce, the 30-day (the “black” curve) MA now acted as a resistance.

So, when it reached the 30-day MA, it had a high probability of going back down again.  And, it did so today.  The company news on raising 2009 outlook was completely ignored.  Fundamentally, one can “reason” that since the stock has gone up so much, the raised outlook was already built into the price.  This would also help us in future trading of this stock, as the $130-$135 range is now viewed as being high.

Now, let’s take a look at the “call” trade.  I wanted to share this one because at first glance, the daily chart might not be that different than the ESI chart. 

This morning, as the market got stronger.  We got in the GS calls.  Since the market was rallying and the financials were leading the way, we wanted to pick the best companies, the strongest stocks, to play calls on:
February 24, 2009
10:50 | HappyTrading GS ($89.10) Sold to Close GSCP Mar 80 calls, at $13.60 +31%
10:24 | HappyTrading GS ($88.20) Sold to Close GSCP Mar 80 calls, at $13.00 +24%
10:11 | HappyTrading GS ($87.60) Sold to Close GSCP Mar 80 calls, at $12.50 +20%
07:31 | HappyTrading GS ($84.20) Bought to Open GSCP Feb 80 calls, at $10.40

We bought GS Feb 80 calls in the morning and took partial profits on the way up.  We locked in profits as high as +31%.  These options closed at its day high at $16.65.  Because of the recent volatility, we were being very careful and locked in quick gains.  GS met some resistance at $90, but, plowed through it as shorts started to cover at the end of the day.  Let’s take a look at the chart:

GS (3-month Daily Chart)

1) Similar to ESI, we recently saw GS’s 10-day MA (the “red” curve) turn lower.  However, the 10-day MA stayed above the 20-day MA (the “cyan” curve).

2) As the market rallied today, GS got above its 30-day MA (the “black” curve), signalling that the 30-day MA is still a support, and the “bullish” trend is staying intact.

The financials were so strong today, GS jumped above the resistance at $90.  It could continue higher to test $100 from here.  So, the two charts are similar, but, there are significant differences.  GS held its “bullish” formation and the 30-day MA acted as a support, while ESI dissolved its “bullish” formation and its 30-day MA became a resistance.

To readers not familiar with technical analysis, the charts may seem like a bunch of indecipherable, random, lines.  But, if you spend some time studying them, you’ll come to see that they contain so much information, including the fundamentals!  You may just find the “hidden” treasures if you learn to “read between the lines”!

Good night and HappyTrading! ™

The market had a really tough week last week.  The Dow lost 322.59 points; SPX fell 40.52 points; Nasdaq tumbled 111.64 points!!  Last weekend, in my Market Forecast, I said,

“For the new week, although we only have 4 trading sessions, I think it could be a very crucial week.  VIX could test 22 from here, which would not be good for the market.  SPX‘s daily MAs are getting pinched closer and closer together; this could signal big movements coming soon.”

VIX closed just above 23 on Friday, and, we saw a huge move to the downside on Thursday (SPX -38.15 points), as more bad economic news vexed the market.  We also saw USO (oil) and UNG (natural gas) break down lower (mentioned in last week’s Sector Watch).  However, even though oil prices went lower and the dollar continued to climb, the selling pressure was too great for most sectors to overcome.

“Both indices are still within their recent ranges: SPX 1260-1300; Nasdaq 2350-2450.  VIX bounced up to its 20-day MA (not shown here) and closed above 20.  For the new week, although we only have 4 trading sessions, I think it could be a very crucial week.  VIX could test 22 from here, which would not be good for the market.  SPX‘s daily MAs are getting pinched closer and closer together; this could signal big movements coming soon.”

VIX tested 22 today and closed at 21.99, and, we saw some big swings on the market.  The high on the Dow was 11,709.17 and the low was 11,471.9; a swing of more than 300 points!  In the Sector Watch, we also looked at USO and UNG seeing the potential to test the recent lows.  Today, both broke below their support levels!

Energy-related stocks got dragged down lower with oil and natural gas.  XLE (energy) took a hit and dropped 5.49%.  Solar stocks were also weak.  Metal and mining stocks were among the biggest losers: RTP -10.46%; X -10.28%; BTU -11.96%; ACI -14.84%; MEE -10.02%.  Fertilizers recorded some big losses as well: MOS -8.93%; CF -9.44%; POT -6.53%.

The Dow was down 26.63 points; SPX slid 5.25 (after being up +20 points!); Nasdaq slipped 18.28 points (was up more than +45 points in the morning!):

Most sectors ended red, with commodity-related sectors recording steep losses:  USO (oil) -3.96%; UNG (natural gas) -9%; XME (metals and mining) -7.33%; OIH (oil services) -5.07%; GDX (gold miners) -6.35%; GLD (gold) -3.07%.  MOO (agriculture) fell 4.45%.  XLF (financials) added +1.4% while HGX (housing) gained +1.63%.  FXI (Chinese ADRs) fell 1.85%.

SPX

SPX slid 5.25 points to close at 1277.58.  It closed at its 30-day MA.  The MACD stayed flat.

Nasdaq

Nasdaq lost 18.28 points to close at 2349.24.  It closed below its daily MAs and just below the 2350 level.  Its MACD went lower.

The market is trading fast, up and down within the recent ranges (SPX 1260-1300; Nasdaq 2350-2450).  Nasdaq closed just below 2350, the lower end of its recent range.  VIX popped up to 22.  Commodities took a big hit today and could be starting a new leg down.  USO‘s next support is at $85, while UNG is basically at its all-time low!  2 months ago, UNG was at almost $64, its all-time high; it closed at $33.45 today, almost 1/2 of its value at the end of June!!  MOO also broke down below its recent support ($50), and, could slide lower from here. 

So, SPX and Nasdaq are barely hanging on.  Commodity sectors are looking weak again.  On the other hand, the financial and housing sectors are bouncing nicely.  Still getting mixed signals.  We’ll be watching Nasdaq closely tomorrow to see how it handles 2350.  Also, if VIX goes above 22, it would not be good.  Be very careful!

Good night and HappyTrading! ™

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