The market was strong out of the gate this morning on the latest economic reports, including better-than-expected industrial production and housing data. WMT reported solid earnings and raised its full-year guidance. WMT shares traded up +1.21%. HD barely beat the estimates with its earnings, but, its shares went up +3.4%.
In addition, BHP initiated a takeover bid for POT at a price of $130/share, to which POT publicly rejected as being "grossly inadequate". Stocks in the agriculture sector all jumped (see Sector Watch from this weekend). POT gained a whopping +27.66% to close just above $143, above the BHP bid price. AGU, which had tried to buy CF last year, went shopping again this weekend with a bid of more than $1 billion for Australian grain producer AWB. AGU shares rose +4.58%. CF added +4.66% and MOS hopped +8.74%.
Mining stocks were very strong today as well: WLT +7.27%, CLF +3.97%, X +4.23%, FCX +3.11%. We opened a few new trades this morning, and took some quick profits before the end of the day, including trades on AMZN and WYNN:
August 17, 2010
12:16 | HappyTrading AMZN ($129.40) Sold to Close 08C125 Aug 125 calls, at $4.75 +44%
11:26 | HappyTrading WYNN ($90.90) Sold to Close 08C90 Aug 90 calls, at $1.90 +76%
10:21 | HappyTrading AMZN ($129.95) Sold to Close 08C125 Aug 125 calls, at $5.30 +61%
10:20 | HappyTrading WYNN ($91.19) Sold to Close 08C90 Aug 90 calls, at $2.10 +94%
08:50 | HappyTrading AMZN ($129.75) Sold to Close 08C125 Aug 125 calls, at $5.10 +55%
08:39 | HappyTrading WYNN ($90.79) Sold to Close 08C90 Aug 90 calls, at $1.95 +81%
For WYNN, we got into the August 90 calls and basically doubled in a couple of hours. Our highest exit was at $2.1; the day high was $2.11. Those August 90 calls dropped all the way back to $1.15 for the close. So, our exits were very good. We also got some good timing on the AMZN trade. Our highest exit there was $5.3 and the day high was $5.4. The AMZN August 125 calls closed at $4.2. Both of these trades were initiated this morning and completely closed by the end of the day.
The Dow ended the day up +103.84 points; SPX added +13.16 points; Nasdaq gained +2209.44 points:

Almost every sector ended in the green today. XME (metals and mining) led the charge with a +2.8% win. OIH (oil services) bounced +2.33%. XLE (energy) went up +1.67%. XLF (financials) was muted, albeit green. SWH (software) garnered almost +2%. MOO (agriculture) vaulted +4.88% on the M&A activities. FXI (Chinese ADRs) rose +0.84%.
SPX

SPX added +13.16 points to close at 1092.54. It closed just below the 30-day MA. The MACD slid.
Nasdaq

Nasdaq gained +27.57 points to close at 2209.44, above the 2200 level. Its 10-day MA went lower.
Both SPX and Nasdaq popped back above their respective support levels (SPX 1080 and Nasdaq 2200), although Nasdaq closed just barely above. Just yesterday, a lot of people were looking for the market to break down, but, the market managed to hold on. With the market indices just above the support levels, the market is hardly out of danger. We’ll have to see if the market can continue this rally. Thus, we closed most of our August call plays and are back into mostly cash.
The market tested SPX 1100 today, but, was not able to break through. In the Trading Room, I commented,
August 17, 2010 10:23 AM
market
VIX below 24; SPX testing 1100… might need a little rest before going higher…
If you check the time stamps, from above, on our highest exits today, you can get a sense of how timely our members get vital information in our Trading Room. The market acted on cue and started selling off. Cashing these trades out gives us a lot more "options" for tomorrow, and perhaps the rest of the week. If the market turns down, we will be prepared to trade the downside. On the other hand, if the market continues to rally, we can jump back into our trades. The funny things is, the WYNN trade came back to our original entry point, after we have doubled and cash out!
Good night and HappyTrading! ™
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Atlas Energy, Inc. operates as an independent developer and producer of natural gas and oil in the Appalachian, Michigan, and Illinois Basins. It primarily holds interests in the Marcellus Shale of western Pennsylvania, the Antrim Shale of northern Michigan, the Chattanooga Shale of northeastern Tennessee, and the New Albany Shale of west central Indiana. The company also provides natural gas gathering services in the Anadarko and Permian Basins in the southwestern and mid-continent United States, as well as in the Appalachian Basin in the eastern United States. As of December 31, 2009, Atlas Energy owned and operated 8 active natural gas processing plants with aggregate capacity of approximately 900 MMcfd and 1 treating facility with a capacity of approximately 200 MMcfd located in Oklahoma and Texas; and 9,100 miles of active natural gas gathering systems situated in Oklahoma, Kansas, and Texas. It also owned and operated a 1,800-mile natural gas gathering system in the Appalachia Basin located in eastern Ohio, western New York, and western Pennsylvania; and an 80-mile natural gas gathering system situated in northeastern Tennessee. The company was formerly known as Atlas America, Inc. and changed its name to Atlas Energy, Inc. in September 2009. Atlas Energy, Inc. was founded in 2000 and is based in Moon Township, Pennsylvania.
Mechel OAO, through its subsidiaries, operates as a mining and steel company in the Russian Federation and internationally. The company operates in four segments: Mining, Steel, Ferroalloys, and Power. The Mining segment produces coking and steam coal, as well as iron ore and iron ore concentrate. This segment operates four open pit mines and three underground coal mines in the Kuznetsky Basin, near the city of Mezhdurechensk in southwestern Siberia; two open pit mines and one underground mine in the Sakha Republic in eastern Siberia, as well as holds the license rights to mine the undeveloped Elga coal deposit; four mining complexes in West Virginia in the United States; and Korshunovsk, Rudnogorsk, and Tatianinsk open pit iron ore mines in the Irkutsk region in central Siberia. It also offers coal washing services. The Steel segment produces and sells semi-finished steel products; carbon and specialty long products; carbon and stainless flat products; and value-added downstream metal products, including wire products, stampings, and forgings, as well as steel industry materials, such as limestone, coke, and coking products. The Ferroalloys segment engages in the production and sale of nickel ore, ferronickel, ferrochrome, and ferrosilicon. The power segment produces and sells electricity to internal and external customers. It markets electricity and heat energy from its steam coal. This segment also has interests in a power distribution company. The company was founded in 2003 and is based in Moscow, the Russian Federation.
Silvercorp Metals, Inc. engages in the acquisition, exploration, development, and mining of precious and base metal mineral properties in the Peoples Republic of China. It explores for silver, gold, lead, and zinc properties. The company primarily operates and develops four Silver-Lead-Zinc mines at the Ying Mining Camp, Henan Province; and the Na-Bao Polymetalic Project in Qinghai Province, China. The company is growing its resource base through continuous exploration of existing projects as well as acquiring new development and exploration projects in multiple jurisdictions. Silvercorp is listed on the Toronto Stock Exchange and the NYSE under the symbol T.SVM and SVM respectively.
Western Refining, Inc. is an independent crude oil refiner and marketer of refined products headquartered in El Paso, Texas, and operates primarily in the Southwestern region of the United States, including Arizona, New Mexico, and West Texas. They have invested a significant amount of capital in refinery initiatives that will allow us to improve our crude oil processing flexibility, expand refinery capacity, increase production of higher-value refined products and satisfy certain regulatory requirements.
Yongye Biotechnology International, Inc., headquartered in Beijing, is engaged in the development, distribution and sales of fulvic acid based nutrients for plants and animals. The Company’s patent pending processes and proprietary formulas allow it to create products which increase crop yields and improve the health of livestock. The Company sells its products through distributors and directly to farmers located in ten provinces throughout China. 






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