MyHappyTrading's  Instablog

Send Message
MyHappyTradingTM is a social network site with a focus on the global financial markets. It is an online community where you can share your thoughts and your investment/trade ideas with the community and the network that you build. Our Basic Membership is FREE. MyHappyTradingTM provides you the... More
My company:
My Happy
My blog:
My Happy Trading
  • Market Gives Up Early Gains To End Mixed 0 comments
    Dec 7, 2010 7:41 PM | about stocks: GS, JPM, WFC, PNRA, CTRP, GMCR, GOOG, NFLX

     Subscribe via Email (FREE)

    The market gapped higher at the open today as investors initially seemed to cheer the tax cut deal reached between the White House and the Republicans.  Nasdaq vaulted above 2600, as SPX recorded a new 2010 high.  However, profit-taking immediately kicked in from the opening bell.  Gold, after trading above $1430/ounce (a new record high), started to plunge.  Remember how we discussed using gold as an indicator for the stock market?  Well, as gold charged higher in the past few days, so did the market; and, when gold turned back down, people cashed out on their profits in stocks as well.

    Financials were mostly green in the morning, but, ended mostly red:  GS down $1.06; JPM down $0.66; WFC down $0.27.  Few stocks managed to hang on to solid gains:  CTRP +4.33%; PNRA +3.81%; GMCR +7.31%.  GMCR was very strong today.  If it breaks above $38, it could see a breakout.  GOOG has been trading wildly in the past couple of weeks.  It took a sharp drop on the news of an Europen investigation over its search practice.  It bounced with the market and jumped more yesterday and today on the news of entering the eBook market.  GOOG traded as high as $593 today and ended at $587.14, up $8.78.

    After the market, NFLX announced that its CFO is leaving the company.  NFLX jumped to nearly $200 this morning and started to slide with the market.  It ended at $189.81, down 1.89%.  After the market, it dropped another 2.88% to just above $184.  We picked up some puts on NFLX as the market got weaker in the afternoon.  NFLX could easily test $180 in a weak market.

    The Dow was down 3.03 points; SPX added +0.63 point; Nasdaq gained +3.57 points:

    GLD (gold) and SLV (silver) both came down fast, losing 1.88% and 4.85%, respectively.  OIH (oil services) lost 2.06%.  XME (metals and mining) fell 1.68%.  XLF (financials) barely closed green.  INX2 (internet) was up +1.42%.  FXI (Chinese ADRs) was up fractionally.


    SPX added +0.63 point to close at 1223.75.  It managed to stay above the 1220 level.  Daily MAs and MACD glided up.


    Nasdaq gained +3.57 points to close at 2598.49, just below 2600.  Its MACD and daily MAs were slightly higher.

    VIX finally went below 18 today.  But, with the quick market pullback in the afternoon, it basically came back up to 18 again.  SPX and Nasdaq both made intraday highs for 2010, but, did not hang on to those levels.  We have to be a little more careful here.  Not being able to break above the recent highs could invite more profit-taking.  We cashed out on a lot of positions today and are in mostly cash again. 

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

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Back To MyHappyTrading's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.