Thursday Wrap-Up: Commodity Sectors Push S&P 500 to New Height

by: MyHappyTrading

After yesterday's strong showing, the market pushed higher today. In my article last night, I said,

"I think we'll need to see the commodity sectors push higher in order for the broader market to break above the recent resistance levels."

Today the commodity sectors responded. Miners were very strong. Freeport McMoran (NYSE:FCX) closed above $66 with a +4.91% gain. In my Sector Watch this weekend, I specifically mentioned that, "I think X could give the shorts a good squeeze next week and resume its climb."

US Steel (NYSE:X) charged up +5% to $47.32, a new multi-month high!

Coal stocks were on fire today: Consol Energy (NYSE:CNX) +7.29%, Peabody Energy (NYSE:BTU) +6.06%, Massey Energy (NYSE:MEE) +8.37%, Cliffs Natural Resources (NYSE:CLF) +6.84%. Casino stocks pushed higher again: Las Vegas Sands (NYSE:LVS) +12.21%, Wynn (NASDAQ:WYNN) +2.28%, WMS (NYSE:WMS-OLD) +3.61%. This morning, in our Trading Room, I commented, "LVS setting up for a breakout; any news on the IPO?"

Sure enough, right after we entered into a new long position in LVS, LVS was halted! When LVS resumed trading, it quickly jumped another $1. LVS announced that it has reworked a credit agreement in a way that would let it sell a minority interest in its Macau operations to raise cash. One of the possiblilities from this arrangement is to a list a minority interest of its Macau operations on an Asian stock exchange. LVS has a resistance at $15, above which it could easily rise into the $20s.

The Dow finished up +36.58 points; SPX added +6.92 points; Nasdaq gained +10.63 points:

XME (metals and mining) led the market up with a +4.71% gain. Other commodity sectors were strong as well: OIH (oil services) +3.25%, GDX (gold miners) +2.81%, XLE (energy) +1.22%, MOO (agriculture) +2.31%. SLV (silver) jumped +3.14%. XLF (financials) pushed higher by +2.07%. SOXX (semiconductors) led the techs, adding +2.19%. FXI (Chinese ADRs) rose +0.58%.

SPX added +6.92 points to close at 1012.73. Its daily MAs went higher and the MACD stayed flat.

Nasdaq gained +10.63 points to close at 2009.35, above the 2000 level. Its daily MAs climbed higher and the MACD flattened.

While SPX went to 1018 last week, today's close of 1012.73 is its highest close since early October 2008! Nasdaq also managed to close above 2000. VIX once again sank to below 25! Commodity sectors responded well today while the dollar dropped lower. Energy stocks, though, still lagged. Financials and techs took a backseat today, but, were still on the positive side. For the broader market, the daily upper BB is now within reach, which is at about 1025 for SPX. If the financials and techs resume their climb with momentum, I think we'll get there. But, given that tomorrow is Friday, we could see some profit-taking in the afternoon.