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Coals Lead The Market Higher

|Includes:AAPL, AMZN, ARCH, BLK, BTUUQ, CLF, GOOG, GS, JPM, MEE, Netflix, Inc. (NFLX), NKE, PCXCQ, PNC, TIBX

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The market continued to rally higher.  Familiar names such as AMZN, AAPL, GOOG, and NLFX were all up today.  Last Thursday, I mentioned that "We'll be watching AMZN carefully.  Above $180 is a new breakout!"  AMZN broke out above $180 yesterday and stayed strong.  Many of the traders in our Trading Room are in on the January calls for AMZN.  I traded the 180 weekly calls as AMZN pushed up above $180 yesterday.  AAPL is finally gaining some momentum, nearing all-time high once again.  GOOG popped $8 today and could see $610 soon.  NFLX jumped +4.6%.

As a sector, coals were really strong.  M&A speculations have kept buyers in the game.  MEE is rumored to be wooed by multiple suitors.  Favorite names in the sector were all up:  CLF +1.92%, WLT +1.08%, ANR +2.78%, BTU +2.87%.  Other smaller coal miners also jumped:  ACI +4.15%, PCX +6.85%.  We cashed out some overnight gains on ACI:

December 21, 2010
12:30 | HappyTrading ACI ($34.70) Sold to Close 01C33 Jan 33 calls, at $2.43 +63%
07:47 | HappyTrading ACI ($34.32) Sold to Close 01C33 Jan 33 calls, at $2.20 +48%

Financials also kept their strength:  GS +1.31%, BLK +2.13%, JPM +2.63%, PNC +2.52%.

After the market, TIBX reported a fourth-quarter net income that rose 18 percent, above the expectations.  TIBX traded up +4.34% this evening.  NKE also had a strong quarter, but, it warned of higher margin pressures for next year.  NKE shares sold off 5.62% in after-hours.

The Dow was up +55.03 points; SPX added +7.52 points; Nasdaq gained +18.05 points:

XME (metals and mining) led the market with a +1.93% gain.  XLF (financials) was not far behind, up +1.74%.  USO (oil) and GLD (gold) both closed in the green.  MOO (agriculture) found renewed strength, climbing +1.42%.  FXI (Chinese ADRs) bounced +2.1%.

SPX

SPX added +7.52 points to close at 1254.6, above 1250.  The daily MAs and MACD continued to sail up.

Nasdaq

Nasdaq gained +18.05 points to close at 2667.61, above 2650.  The daily MAs and MACD were also higher.

The market continues to melt up higher.  Mining stocks, especially the coals, are keeping the interest of the buyers.  SPX and Nasdaq both closed just above the recent resistance levels and at new 2010 highs.  Big name techs, such as AAPL, IBM, GOOG, and AMZN, are just starting to see some upwards momentum.  VIX, however, also closed in the green.  We could start to see some profit-taking in the mining stocks, but, if the financials and techs stay strong, the market could still climb higher.  Be a little more careful if VIX gets above 17.

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