MyHappyTrading.com's  Instablog

Investors cheered the reassurance from the G-20 to keep economic stimulus measures in place.  The market opened strongly today and continued to go higher until the close.  Most sectors participated in the rally.  Gold recorded new record highs, trading above $1100/ounce.  Oil also went up, trading above $79/barrel.  We locked in some more profits today, including some December calls on GLD:

November 09, 2009
10:12 | HappyTrading GLD ($108.20) Sold to Close GCZLA Dec 105 calls, at $4.60 +67%
07:20 | HappyTrading CTRP ($63.35) Sold to Close QCTKL Nov 60 calls, at $5.00 +56%

Financials were strong today.  The credit card stocks soared to new 2009 highs.  In my Sector Watch this weekend, I specifically pointed out that "AXP looks like it has more room to go[, and] MA has momentum on its side."  AXP shares jumped almost +5% today and MA closed above $242.  COF hopped +5.6% while V added +1.87%.  Casino stocks also had a strong day.  In our Trading Room, we started talking about the casino stocks early:

Last weekend, in my Market Forecast, I said,

"For the new week, it looks like the market is trying to send the Fed a message before the FOMC meeting on Wednesday.  What the market is trying to show is the potential "double-dip" if the Fed pulls out liquidity measures too soon.  On Friday, the market will get the latest unemployment rate report.  The next support levels are SPX 1020 and Nasdaq 2000.  But, if the market falls fast, we could see SPX 1000 and Nasdaq 1950 tested.  VIX popped back above 30, which is alarming.  The market tone has turned more bearish for the short-term and could continue to see some weakness to start the week.  We'll have to see how the market responds to the Fed on Wednesday and to the unemployment report on Friday.  We might see some bounces, but, unless the market indices can rise above the daily MAs, the momentum is presently on the downside."

Indeed, the market started on the weak side.  But, it did not fall too much lower than last week's close.  On Tuesday, the market found buyers coming back into commodity sectors as gold jumped to a new record high!  In last weekend's Sector Watch, I alerted to watch GLD for a potential run:

We've had another tremendous week this week.  We were very careful to start the week.  But, when gold appeared to be breaking out, we jumped on the gold-rushing train, as a member exclaimed today:

billbigD November 6, 2009 12:45 PM
GLD- Happy very nice on those two GLD trades before the India announcement. Congrats

We also did very well on GOOG.  Here are the closed trades for the week (trades with above +50% gain are highlighted):

This morning, the jobless claims numbers were much less than expected.  Adding to CSCO's positive outlook from last night, the market was in a rallying mood from the open.  In our Trading Room, I commented:

November 5, 2009 6:58 AM
good morning!

market
nice economic data this morning; market should have a solid day to test SPX 1060 to 1070 region.

This morning, in our Trading Room, a member asked about what to expect immediately after the Fed's rate decision annoucement:

angar November 4, 2009 6:58 AM
Good morning happy. are you expecting rally after Fed meeting today?

I replied:
November 4, 2009 7:18 AM
Fed
don't have big expectations, besides volatility, but, if SPX can close around 1060, it'll be encouraging...

It was a volatile morning while stocks bounced around and experienced fast swings in a tight range.  We got shaken out of a couple of trades in the morning.  But, soon, much attention turned to gold as it rallied to a new record high, trading above $1084/ounce!  Gold surged on news that the Reserve Bank of India bought 200 tons of gold from the IMF for $6.7 billion.  In our Trading Room, conversations on gold got started early:

tc924 November 3, 2009 6:41 AM
gold is on the move

HappyTrading November 3, 2009 7:36 AM
ABX
really strong; good earnings last week...