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Market Brushes Aside Earnings From IBM And TXN: SPX, Nasdaq, IBM, TXN, AAPL, CRUS, SNDK, BRCM, VMW, CLF, BTU, STLD, WLT, FCX, X, WFC, NFLX, FFIV, QCOM, SBUX

July 20, 2010 – 2:15 pm

Yesterday, the market eked out a small gain, ahead of IBM and TXN’s earnings.  Then, both IBM and TXN disappointed investors with their quarterly reports.  Today, the market open gapped down, but, started to bounce almost immediately.  Both BTU and STLD delivered solid earnings and commodity sectors soon bounced strongly.  Miners did especially well:  CLF +8.19%, X +7.45%, FCX +5.69%, WLT +6.07%.

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)

By HappyTrading | Posted in IBM, AAPL, FFIV, FCX, X, QCOM, BRCM, VMW, SNDK, TXN, NFLX, SBUX, CLF, BTU, STLD, WFC, WLT, CRUS | Comments (0)

Lamentations on Google

July 19, 2010 – 2:15 pm

The market unraveled. There were signs it was going to happen.  Key among them was the behavior of Google before, during, and after its earnings release.

I especially like the phrasing of the update in the Financial Post on Friday morning: "Responses to second quarter earnings reports released overnight were disturbing."  GOOG reported second quarter earnings of $6.45 per share.  This was only $0.07 worse than the Thomson-Reuters consensus, $6.52.  Further, J.P. Morgan analyst Imran Khan had, the previous week, amended JPM’s estimate for the quarter to $6.38, because of the very visible and easily calculated impact of the weaker Euro against the dollar, costs of currency hedging, plus an estimate of the effects of loss of revenue from direct sales of the Nexus One phone.

Microanalysis of the technical movements reflected despair settling onto the market. GOOG had ceased upwards momentum in the days running up to the release, pausing near 490.  Some commentators were expecting little reaction of the stock to its announcement, with a few putting a near term target of 510 into the Blogosphere.  Last minute pressure ran the price to 495 finally in the final moments of 7/15.  But the earnings announcement blasted the stock in the postmarket, pushing it down $20. 

Do the math. The stock price was able to fall 4 percent for a 1 percent miss in earnings - which was actually an earnings beat if you look at some recent revisions such as JPM’s. This kind of critical market response to what was actually an "in line" result is one of the best market bellweathers we can have today. It told us that despair ruled, and that there was little future for the current earnings season rally.  If the market had a face, it would have turned white with fear, looking at the abyss.

Confirmation was as close as the next morning in the Premarket, when no "overreaction buying" followed the "Day 2 effect".  No Dead Cats today, as futures confirmed the general readings, and the Premarket broke down for GOOG, followed by heavy dumping as the market opened.  Friday continued with a 2.5% general market slide, of the low volatility type, which is bad news indeed.

Now the valuation talk starts.  Barrons put up an article saying that Google can gain 35% in the next months.  Shall we all rush to buy?  Not in this particular market.  Let’s wait until October, after GOOG may have settled even more.  Then Barrons will say there is 45% upside, and it might be time to listen to them.

By Skymist

By HappyTrading | Posted in GOOG | Comments (0)

Market Forecast + Sector Watch: SPX, Nasdaq, XLF, XME, INX2, OIH, XLF, XME, INX2, OIH, IBM, TXN, GS, YHOO, SNDK, AAPL, QCOM, SBUX, WFC, FCX, AMZN, NFLX

July 18, 2010 – 6:07 pm

Last weekend, I forecasted:

"For the new week, it will be about the earnings.  If the earnings are strong and confirm the strength in the economic recovery, the market can continue to rally.  Otherwise, the market could turn down to test the recent lows again.  On Monday, we’ll hear from AA and CSX after the market.  On Tuesday, INTC and YUM will report.  Thursday brings JPM in the morning and GOOG in the afternoon.  On Friday, C, BAC, and GE wil present their quarterly reports."

It was indeed all about the earnings.  On Monday, the market was hesitanct ahead of earnings from AA and CSX.  After the market, both AA and CSX gave solid reports.  On Tuesday, the market rallied.  INTC delivered its best quarter in a decade!  On Wednesday, the market traded flat, waiting for the numbers from JPM and GOOG.  We locked in some superb profits on ISRG!  JPM delivered a good quarter on Thursday morning, and the market closed higher on BP capping the well and GS getting a favorable settlement with SEC.  However, after the market GOOG missed its earnings estimates.  On Friday, both BAC and C reported disappointing results.  The market was on the defensive right from open and sank lower until the close.

For the week, the Dow was down 100.13 points; SPX fell 13.08 points; Nasdaq slipped 17.4 points.  Oil traded flat, but, gold sank below $1200/ounce.  At the time of this writing, Asian markets were mostly down, following the performance of the US market on Friday…

SPX

On Friday, SPX dropped 31.6 points to close at 1064.88.  It closed just below its daily MAs.  The MACD flattened.

Nasdaq

Nasdaq fell 70.03 points to close at 2179.05.  It closed right at its 10-day MA.  Its MACD fell flat.

The market rose higher to test SPX 1100, but, ended losing all of last week’s gain on Friday.  VIX rose briefly above 28 before closing at 26.25.  For the new week…

To read the rest 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 7/19/10.

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By HappyTrading | Posted in GS, IBM, OIH, AAPL, FCX, XLF, XME, YHOO, QCOM, INX2, AMZN, SNDK, TXN, NFLX, SBUX, WFC | Comments (0)

7/16/10 Weekly Wrap: BP, GOOG, ISRG

July 18, 2010 – 2:54 pm

It was another range-bound and, yet, volatile week.  We didn’t publish a whole lot of trades, but, traded actively in the Trading Room.  Two, in particular, gave us really nice returns.  One is GOOG from early in the week, with gains as high as +189%.  The other is ISRG with a +233% profit. (see ISRG case study)  BP offered us some good opportunities.  Here are the closed trades:

July 16, 2010
07:08 | HappyTrading MLM ($83.70) Sold to Close 07P85 Jul 85 put, at $1.50 -40%
06:49 | HappyTrading BP ($38.20) Sold to Close 07C36 Jul 36 calls, at $2.20 +47%

July 15, 2010
12:56 | HappyTrading BP ($39.40) Sold to Close 07C36 Jul 36 calls, at $3.50 +133%
12:42 | HappyTrading POT ($98.10) Sold to Close 07C95 Jul 95 calls, at $3.30 +22%
12:34 | HappyTrading POT ($97.90) Sold to Close 07C95 Jul 95 calls, at $3.10 +15%
08:07 | HappyTrading AIG ($36.55) Sold to Close 07C37 Jul 37 calls, at $0.40 -60%

July 13, 2010
08:48 | HappyTrading BP ($36.70) Sold to Close 07C35 Jul 35 calls, at $2.20 +29%

Our trades on CLF, FSLR, and AMLN expired and will be included in the Monthly Wrap for July.

I’ll be back later on this evening with my weekly Market Forecast.

HappyTrading! ™ (click to see our Facebook Page)

By HappyTrading | Posted in GOOG, ISRG, BP | Comments (0)

Case Study On ISRG: +233% Gain Overnight!

July 14, 2010 – 3:32 pm

The market saw some profit-taking today, as expected (see yesterday’s article).  Since the broader market ended little changed, I thought I’d do a case study on a very good trade.

Most traders know that ISRG can make big movements.  For options traders, big movers are of special interest during the last couple of weeks before expiration.  The market has been rallying higher and ISRG has been lagging, for no particular reason.  I started commenting on ISRG last Friday, looking for a potential big moves to the upside:

July 9, 2010 12:49 PM
ISRG
no strength…

Yesterday, ISRG finally showed signs of life:
July 13, 2010 7:06 AM
ISRG
waking up

If you compare the ISRG’s chart to that of SPX (or, those of many other market leaders), you can get a sense of what I was looking for:

SPX

A week ago, SPX had already jumped above its 10-day MA and had been spending time fighting the resistance at 1080.  Yesterday, it broke above 1080 and is now testing the resistance at 1100.

ISRG

Comparatively, ISRG shows a very similar chart.  But, after getting above the 10-day MA, it immediately turned lower.  It tested the support at the $320 level again.  Yesterday, early in the morning, it broke above $320, and, above its 10-day MA, again.  That was my cue for a potential $20 move (from $320 to $340).  In order to catch up to the broader market, ISRG would have to go above its daily MAs and test the next resistance at $340.

ISRG did exactly as it "should" or "could".  What’s happening here is that I’m obviously not the only one who’s looking for laggers that can have big potential movements.  Market makers are also looking for more stocks to drive higher.  After today, ISRG’s chart has pretty much caught up to where SPX is.  You can compare the 2 charts and see the similarities.

I bought the ISRG July 330 calls yesterday morning at $3 and sold them as high as $10 today for a profit as high as +233%:

This morning, in our Trading Room, I commented:
July 14, 2010 7:28 AM
ISRG
almost $333, could see $340 soon

I sold 1/2 of my position at $6.5.  As our members know, I often take profits on the way up in 2 or 3 stages.  This is because after locking in some profits, I’d feel more comfortable to perhaps let the rest of my position ride a little longer.  Cashing 1/2 of my position at $6.5, which was +117%, meant that the remaining 1/2 of my position was already playing on the house money.  My risk had become zero.  As the stock went up higher, I cashed out more at $10, +233%, and left a small position to perhaps ride higher.  I estimated that at $340, those 330 calls were going to be at around $11 due to the premium.  I was looking for a quick overshoot above the $340 mark to perhaps $342.5.  So, I set my limit sell order for the last part of my position at $12.  The high of the day on the stock was $341.05 and those options went as high as $11.69.  It did get close, but, did not get filled.  Then, I set a stop at $8, +167%, and got filled on a quick drop in the afternoon.  These options closed at $8.91 for the day.

If you had bought just 10 contracts of these ISRG July 330 calls yesterday, you could have easily made $5000 to $8000 in a day!

Let’s recap what we could learn from today’s case study:
1)  When the market goes in a direction fast, we can often look for laggers that have been market leaders to make the similar movement to catch up to the market.

2)  Charts can often give you a pretty good idea of what your potential trade is, including entering and exiting points.  (I often call out those targets in our Trading Room.)

3)  When the trade does pan out in your favor, don’t be shy to lock in partial profits.  This can help keep you stay centered and be more comfortable to hold the rest of your position for potentially bigger gains.

Now that ISRG has caught up to the SPX, I’d say that ISRG will go where SPX goes next. 

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

By HappyTrading | Posted in ISRG | Comments (0)

Strong Earnings Push The Market Higher! SPX, Nasdaq, CSX, AA, JOYG, GOOG, RIMM, AAPL, AMZN, IBM, PCLN, FFIV, CREE, VMW, CRM

July 13, 2010 – 3:46 pm

Yesterday, after the market, both AA and CSX reported solid earnings.  However, CSX ended the day down 1.41% and AA was only up +1.2%.  Mining stocks, in general, were only up slightly.  JOYG stood out in the crowd, gaining +4.82%. 

Financials and techs lead the broader market higher.  GOOG and RIMM have been popular in our Trading Room:

Frosty Muggs July 13, 2010 6:14 AM
RIMM - Looks like it still wants to close the gap from 6/25

Happy, your RIMM Jul calls look like they’re still a good play.

Bagger Vance July 13, 2010 7:17 AM
RIMM 52.5 july calls a 10 bagger from last friday’s open…

skymist July 13, 2010 7:22 AM
… GOOG 100821C490 bought at 13.8 sold at 16.6.

Bagger Vance July 13, 2010 7:48 AM
went with Happy on the RIMM 50 calls (I know a good thing when I see it), and am selling these now!

BOOOYAH, HAPPY!

HappyTrading July 13, 2010 9:02 AM
GOOG 500s
rest out at $6.5 from $2.25 (+189%)

vidosole July 13, 2010 9:25 AM
I am cashing out some long plays:
C 4/5 spread @ 0.25 ( it is 500% winner considering only the long side of the spread and the last purchase of C4 calls).
GOOG - butterfly 470/490/510 @ 5,45 - 122% winner
GOOG - butterfly 480/500/520 @ 5,25 - 1/2 out - 250% winner
That is what I do like with butterflies.

A lot of times during the expiration week when things move very fast, I keep some trades in the Trading Room only because they may be difficult to follow from home through Email Alerts.  For the GOOG July 500 calls, I opened them on Friday at $2.25, and took some profits yesterday at $4 and $4.3.  I cashed the rest out at $6.5 today for a +189% gain:

These GOOG July 500 calls went as high as $8.2 and closed at $7 today.

AAPL was rather weak, after some unfavorable critique on its latest iPhone.  AAPL was down more than $10 intraday, traded as low as $246.43 before closing above $250.  AMZN was strong, rising +3.46%.  IBM closed above $130/share.  PCLN continued to soar after last week’s upgrade, and has gone from just below $180 to almost $220 in 5 trading sessions!

After the market INTC reported its biggest quarter in a decade!  It earned 51 cents per share vs. the concensus of 43 cents per share.  INTC jumped more than +7% in the after-hours trading.  Some tech stocks such as FFIV, VMW, CREE, CRM, which have all been strong, should see more upsides tomorrow morning.

The Dow was up +146.75 points; SPX added +16.59 points; Nasdaq gained +43.67 points:

XLF (financials) was up +2.48%.  INX2 (internet) vaulted +3.59%.  USO (oil) rose +2.84%.  GLD (gold) and SLV (silver) bounced higher.  MOO (agriculture) advanced +1.55%. FXI (Chinese ADRs) climed almost +1%.

SPX

SPX added +16.59 points to close at 1095.34, below 1100.  Its 10-day MA turned higher.  MACD went up.

Nasdaq

Nadsaq gained +43.67 points to close at 2242.03, above 2200.  Its daily MAs have begun to turn up.  The MACD continued higher.

Both SPX and Nasdaq closed above their respective daily MAs, which have begun to turn up.  The MACDs are strong.  INTC’s strong earnings could give the market another boost up in the morning.  But, after 5 days of straight gains, we might see some profit-taking in the afternoon.  A little consolidation may be needed before JPM and GOOG’s earnings on Thursday.  So, don’t forget to lock in some profits!

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

By HappyTrading | Posted in AA, IBM, GOOG, Nasdaq, AAPL, RIMM, FFIV, PCLN, CREE, AMZN, VMW, JOYG, CRM, CSX, Strong Earnings Push The Market Higher! SPX | Comments (0)

Weekly Wrap + Market Forecast + Sector Watch: SPX, Nasdaq, GLD, MOO, XLE, PBW, FSLR, STP, TSL, YGE, BP, APC, RIG, APA, HAL, POT, CF, MOS, NEM

July 11, 2010 – 8:47 pm

Last weekend, in my Market Forecast, I said:

"For the new week, the market should be looking for a bounce after the quick fall for the past 2 weeks.  The above mentioned levels should be the first resistances.  We could see some volatile trading to start the week.  If the market cannot break SPX 1040, we should see more selling before the end of the week.  Energy sectors have been really weak and should see some upsdies if the market bounces."

Monday was a holiday.  On Tuesday, the market gapped up to test SPX 1040, but failed; it sank back down in the afternoon.  However, it tried again on Wednesday.  Around noon, the market broke through SPX 1040 and excelerated higher until the close.  On Thursday, the market displayed some hesitance in the morning and pushed higher in the afternoon.  On Friday, the market continued higher and finished a very strong week.

This market has been turning directions fast in the recent weeks, and the environment has been volatile.  We didn’t trade much this week and had some mixed results trading on both sides.  Here are the closed trades:

July 09, 2010
12:26 | HappyTrading RIMM ($53.65) Sold to Close 07C50 Jul 50 calls, at $3.85 +57%
11:44 | HappyTrading RIMM ($53.35) Sold to Close 07C50 Jul 50 calls, at $3.60 +47%
09:01 | HappyTrading RIMM ($52.90) Sold to Close 07C50 Jul 50 calls, at $3.25 +33%
06:42 | HappyTrading GS ($135.80) Sold to Close 07P135 Jul 135 put, at $2.00 -38%

July 08, 2010
06:37 | HappyTrading BIDU ($73.60) Sold to Close 07C70 Jul 70 calls, at $4.60 +33%

July 07, 2010
11:23 | HappyTrading MA ($205.40) Sold to Close 07P200 Jul 200 put, at $2.50 -43%
10:49 | HappyTrading AAPL ($255.40) Sold to Close 07P240 Jul 240 put, at $1.40 -68%

For the week, the Dow was up +511.55 points; SPX added +55.38 points: Nasdaq jumped +104.66 points.  Oil was up over $75/barrel.  Gold was weak, but, did come back up to close above $1200/ounce.  At the time of this writing, Asian market were mostly higher.  Let’s take a look at how the US market looks after Friday’s close:

SPX

SPX added +7.71 points to close at 1077.96.  It closed just above its daily MAs, but, below the 1080 level.  Its MACD continued higher.

Nasdaq

Nasdaq gained +21.05 points to close at 2196.45, just below the 2200 level.  Its MACD also moved up.

The market bounced fast this week.  SPX closed just above its daily MAs, but, still below the 1080 level.  Nasdaq closed below the 2200 level.  VIX slid back down to just below 25.  For the new week…

To read the rest 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 7/12/10.

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By HappyTrading | Posted in POT, GLD, MOS, FSLR, CF, TSL, STP, RIG, HAL, MOO, PBW, YGE, APA, XLE, NEM, BP, APC | Comments (0)

Market Pushes Higher: SPX, Nasdaq, POT, CF, MOS, RIG, DO, APC, HAL, BP, GOOG, AMZN, PCLN

July 8, 2010 – 2:19 pm

Yesterday, I mentioned that "we should see resistance between SPX 1070 and 1080."  This morning, the market tested SPX 1070 and started to pullback a bit.  But, in the last hour, the market pushed higher again, closing above SPX 1070.

Agriculture stocks were strong:  POT +4.02%, CF +5.12%, MOS +4.63%.  Oil services continued to run higher:  DP +1.56%, RIG +1.82%, APC +7.14%, HAL +2.57%, BP +1.66%.  On the tech side, GOOG added another $6.36; AMZN gained $2.79; PCLN received an upgrade to "buy" and jumped another $8.55.

The Dow was up +120.71 points; SPX added +9.98 points; Nasdaq gained +15.93 points:

XLF (financials) barely finished in the green.  OIH (oil services) added +1.74%, while USO (oil) was up +1.72%.  SOXX (semiconductors) was slightly down.  MOO (agriculture) gained +1.91%.  FXI (Chinese ADRs) was still weak.

SPX

SPX added +9.98 points to close at 1070.25, above 1070.  Its 30-day and 20-day MAs have flattened.  The MACD continued higher.

Nasdaq

Nasdaq gained +15.93 points to close at 2175.4, above its 10-day MA.  It MACD was up.

This market is really trying to establish a bottom.  VIX sank below 26.  The market could turn bullish above SPX 1080.  The jobless claims fell, although this number changes from week to week and, in my opinion, is really pointless to report every week.  It is perhaps something for the media to look forward to write about every week as a "logical" reason for the market’s movements.  To me, this market is still undecided as to which way to go in the near term.  We’ll stay in mostly cash and wait for the market to give clearer signals.  Quick day trades are being played and discussed in the Trading Room.

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

By HappyTrading | Posted in POT, GOOG, MOS, PCLN, AMZN, CF, DO, RIG, HAL, BP, APC | Comments (0)

Market Surges After 2 Weeks Of Selloff: SPX, Nasdaq, GOOG, AAPL, NFLX, CREE, VMW, CRM, VECO, GS, PNC, WFC

July 7, 2010 – 3:05 pm

In my Market Forecast this week, I said, "For the new week, the market should be looking for a bounce after the quick fall for the past 2 weeks.  The above mentioned levels [SPX 1040; Nasdaq 2150] should be the first resistances.  We could see some volatile trading to start the week." 

Yesterday, the market gapped higher and tested SPX 1040, but, turned back lower in the afternoon.  Today, the market tried again.  This time, it succeeded in breaking above that 1040 level and kept on rallying until the close.  Most sectors were higher.  Financials, techs, commodity sectors were all very strong.  GOOG added +14.13 while AAPL also rose $10.  NFLX shot up more than +10%!  VMW rallied +7.53% and CREE gained +8.38%.  VECO soared +10.49%.  Among the financials, GS managed to close above $135, up +2.7%; PNC rose +7.77%; WFC advanced +6%.

The Dow finished up +274.66 points; SPX jumped +32.21 points; Nasdaq gained +65.59 points:

XLF (financials) added +4.41%.  SOXX (semiconductors) led the techs with an +5.05% increase.  XME (metals and mining) gained +5.23%.  OIH (oil services) bounced +4.15%.  GLD (gold) and SLV (silver) traded higher.  USO (oil) was up +3.19%.  FXI (Chinese ADRs) was slightly higher.

SPX

SPX jumped +32.21 points to close at 1060.27, above the 1040 level.  Its MACD turned up.

Nasdaq

Nasdaq gained +65.59 points to close at 2159.47, right at its 10-day MA.  Its MACD also went higher.

With one big jump, the market is right back above the key levels.  SPX is above 1040; Nadsaq is above 2150; and, the Dow is back above 10,000.  VIX slumped down to close below 27.  However, we have seen big one-day pops in the recent months as well (see the above SPX chart, on 5/10 and 5/27).  These pops happened after consecutive days of heavy selling, and did not necessarily confirm immediate reversal.  We should see resistance between SPX 1070 and 1080.  Above 1080, SPX could turn bullish.  This market is still very volatile and is still range-bound.  Earnings season will get started next week and should become the market’s focus and driving force.

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

By HappyTrading | Posted in GS, GOOG, AAPL, CREE, VMW, NFLX, WFC, PNC, CRM, VECO | Comments (0)

Market Forecast + Sector Watch: SPX, Nasdaq, GLD, USO, OIH, XLF, FSLR, TSL, YGE, GS, MA, V, DO, RIG, SLB, RIG, APC

July 5, 2010 – 9:42 pm

Last weekend, in my Market Forecast, I wrote:

"For the new week, this week is still range-bound with a bearish bias.  The longer the market hangs below SPX 1080, the more likely we’ll see SPX test 1040 soon again.  However, if the market rises above 1100, we’ll likely see a new bullish formation in SPX’s daily MAs.  In order for that to happen, we’ll need to see some strong leaders on the market.  Financials, especially, will need to be strong."

Indeed, the market tried to hang around 1080 on Monday, but, could not break above that level.  On Tuesday, the market gave in to the selling pressure and went straight down to test 1040.  On Wednesday, the market tried its best to stay above 1040, but, experienced more selling in the last hour to close below 1040.  On Thursday, the selling momentum pressed the market lower in the morning and SPX touched 1010 before bouncing back a bit.  On Friday, the market traded sideways and ended slightly down.  With the fast selling in the past 2 weeks, the market ended June lower again.  However, we traded with the market and caught some nice trades on both sides.

For the week, the Dow was down 457.33 points; SPX fell 54.18 points; Nasdaq stumbled 131.69 points.  Gold took a big tumble this week coming back to the $1200 level.  Oil also fell, sinking down to just above $71/barrel.  Tonight, at the time of this writing, Asian markets were mostly bouncing higher.  Here’s how the US market looks after Friday’s close:

SPX

SPX slid 4.79 points to close at 1022.58, below the 1025 level.  The daily MAs and MACD continued lower.

Nasdaq

Nasdaq fell 9.57 points to close at 2091.79, below 2100.  Its daily MAs and MACd also kept on slipping.

Both SPX and Nasdaq fell below their respective key support levels (SPX 1040; Nasdaq 2150).  However, after rising above 37, VIX has come down to 30 again.  For the new week…

To read the rest 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 7/5/10.

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By HappyTrading | Posted in GS, OIH, GLD, XLF, USO, MA, FSLR, TSL, DO, RIG, SLB, YGE, V, APC | Comments (0)