MyHappyTrading's  Instablog

Last weekend, in my Market Forecat, I said,

"This market will need some strong earnings report to bounce back up. SPX 1570 could now become a resistance. The market will need to clear above 1580 to resume its bullish trend. On the downside, if 1540 does not hold, the next support is at 1520. Techs will take the center stage next week, with AAPL and AMZN being the heavyweights."

The market pushed higher on Monday. By Tuesday, SPX was above 1570 and was testing 1580. Earnings were mixed, but, the reactions to the reports were mostly positive. On Thursday, SPX pushed above 1590, but, couldn't hold. The broader market ended at 1582.24, just above 1580.

We had an awesome week with 100% of our closed trades were in the GR$$N. Among the trades were +114% on BA calls, +57% on PNC calls, +43% on WYNN calls, and +32% on CELG puts.

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For the week, the Dow was up +165.04 points; SPX added +26.99 points; Nasdaq gained +73.2 points. Gold enjoyed a nice bounce, trading above $1460/ounce. Oil also went higher, to around $92/barrel. At the time of this writing, Asian markets were mixed. Here's how the US markets looked after Friday's close:

SPX

On Friday, SPX slid 2.92 points to close at 1582.24. Its daily MAs and MACD were flat.

Nasdaq

Nasdaq fell 10.72 points to close at 3279.26. Its 10-day MA slipped, but, MACD went up.

The market had an impressive week, but, did not close on a strong note. 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 4/28/13.

What a nice week we've had! We traded mostly on the upside as the market bounced. But, we also caught a couple nice trades on the downside as the market consolidate towards the end of the week. 100% of our closed trades were in the GR$$N:

• 11:15 | Ecstatic Plays AAPL ($415.70) Sold to Close 0503C415 May 415 calls, at $6.00 +22%
• 11:44 | HappyTrading SOHU ($50.50) Sold to Close 05C50 May 50 calls, at $2.60 +36%
• 06:53 | Ecstatic Plays PG ($77.85) Sold to Close 05P77.5 May 78 put, at $1.51 +28%
• 11:48 | HappyTrading CELG ($119.70) Sold to Close 05P120 May 120 put, at $4.10 +32%
• 09:52 | Ecstatic Plays PNC ($68.00) Sold to Close 05C67.5 May 68 calls, at $1.41 +57%
• 09:36 | HappyTrading CREE ($57.60) Sold to Close 05C55 May 55 calls, at $3.80 +9%
• 07:11 | Ecstatic Plays WYNN ($131.50) Sold to Close 05C130 May 130 calls, at $4.85 +43%
• 06:54 | HappyTrading HES ($70.10) Sold to Close 05C67.5 May 68 calls, at $3.45 +25%
• 06:44 | HappyTrading HES ($70.00) Sold to Close 05C67.5 May 68 calls, at $3.40 +23%
• 06:37 | HappyTrading BA ($92.40) Sold to Close 05C87.5 May 88 calls, at $5.10 +114%
• 09:50 | Ecstatic Plays WYNN ($129.00) Sold to Close 05C130 May 130 calls, at $3.50 +13%
• 09:34 | HappyTrading CREE ($57.87) Sold to Close 05C55 May 55 calls, at $4.90 +40%
• 07:46 | Ecstatic Plays GOOG ($814.20) Sold to Close 0426C810 Apr 719 calls, at $9.00 +34%
• 12:01 | Ecstatic Plays GOOG ($801.30) Sold to Close 0426C800 Apr 800 calls, at $8.10 +9%

(to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video)

BA provided us with a nice overnight +114% on its earnings. PNC and WYNN were solid trades. GOOG calls were a nice quick intraday play. We are making some good adjustments. We were not trading weekly options much any more. The high-speed programmed trading is making those trades very difficult. So, we are giving ourselves more time on the options, and the results have been very good. Much more patience is needed in the present market environment.

The bulls and bears are fighting it out here in this 50-SPX-point range (1540 to 1590). We have been zig-zagging up and down within this range all month. On Thursday, SPX tested 1590 again, but, still could not break through. More earnings are coming in next week. Friday's stutter was not very encouraging. We take a closer look at the market on Sunday in my weekly Market Forecast.

Have a great weekend and HappyTrading! ™

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After a 3-day rally that started on Friday last week, the markets took a breather today. There were big earnings moves and some rotation seems to be happening. This morning, AMGN tumbled almost 7% after missing its earnings estimates. Biotechs have been really strong, making continuous new-highs. AMGN's miss seemed to have triggered some profit-taking, sending high-flying biotech stocks on a pullback. BIIB dropped more than 3%; CELG fell 6.13%; ONXX gave back 4.22%; GILD stumbled 5.18%; ALXN slid 2.68%; MDVN was down 4.28%.

On the other hand, materials bounced. Gold traded higher and commodity stocks bounced. Agriculture stocks finally found some buyers to step in. CF jumped +4.27%. IOC was breaking out and added almost +5%. Gold and coal miners were mostly higher.

We had a nice couple of days of trading, continuing from last week. On Monday, we took a quick trade on GOOG calls that gave us a $3 profit intraday. Today, BA jumped in the morning after delivering a strong quarter. We booked a nice overnight +114% profit! PNC has been strong among the financials; we locked in the gains there at +57%:

• 11:48 | HappyTrading CELG ($119.70) Sold to Close 05P120 May 120 put, at $4.10 +32%
• 09:52 | Ecstatic Plays PNC ($68.00) Sold to Close 05C67.5 May 68 calls, at $1.41 +57%
• 09:36 | HappyTrading CREE ($57.60) Sold to Close 05C55 May 55 calls, at $3.80 +9%
• 07:11 | Ecstatic Plays WYNN ($131.50) Sold to Close 05C130 May 130 calls, at $4.85 +43%
• 06:54 | HappyTrading HES ($70.10) Sold to Close 05C67.5 May 68 calls, at $3.45 +25%
• 06:44 | HappyTrading HES ($70.00) Sold to Close 05C67.5 May 68 calls, at $3.40 +23%
• 06:37 | HappyTrading BA ($92.40) Sold to Close 05C87.5 May 88 calls, at $5.10 +114%
• 09:50 | Ecstatic Plays WYNN ($129.00) Sold to Close 05C130 May 130 calls, at $3.50 +13%
• 09:34 | HappyTrading CREE ($57.87) Sold to Close 05C55 May 55 calls, at $4.90 +40%
• 07:46 | Ecstatic Plays GOOG ($814.20) Sold to Close 0426C810 Apr 719 calls, at $9.00 +34%

(to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video;)

We have been trading less weekly options. The high-speed computer trading seems to be attacking weekly options. We will only be trading weekly options on news-driven events when the volume is very high. This change has been helping our results quite a bit these past few weeks. The high-speed programmed trading creates a lot of intraday volatility. It is better to trade slower now and allow some time for our trades to hit our targets. To find out more about how I identify our trades, you can read my recently published book! You'll get a FREE 2-week trial on any one of our services, if you buy my book for just $9.99. You can get my book on Kindle (CLICK HERE) or on Smashwords (CLICK HERE). Smashwords offers all formats different from Kindle. After you've purchased my book, just send an email to admin@myhappytrading.com (or click on the "Contact Us" link on the bottom of this page) and ask for a 2-week free trial of the service that you want. Please include a copy of your book purchase receipt.

After the market, CTXS tumbled 11% after giving a disappointing forecast. This came as no surprised as INFY and IBM also missed badly. Last week we booked a near-triple on CTXS puts off of IBM earnings. AKAM vaulted nearly +18% after reporting a strong quarter, gaining back more than what it lost after last quarter's earnings!

This market seems to be consolidating here at SPX 1580. We may see some sideways trading in the next couple of days. It would be healthy to see some sector rotation. Biotechs have been getting most of the attention from buyers. We'll see if they bounce tomorrow. Techs seem to be mixed now with weakness in business software. It'll be good to see some rotation into commodities to balance things out a bit. We'll be watching energy stocks.

Good night and HappyTrading! ™

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