MyHappyTrading's  Instablog

The market was in a somber mood yesterday, after getting disappointing comments from Congress regarding the fiscal cliff. But, the story was completely turned today, as both Obama and House Speaker John Boehner seemed encourage that a budget deal could be within reach. The market quickly turned higher from being down in the morning.

Most sectors finished in the green; even energy stocks turned higher.

Yesterday, MNST popped more than +13% after receiving a benign letter from the FDA regarding its caffeinated drinks. GMCR reported a strong quarter last night, sending its shares up more than 27% today. SODA also jumped more than +5%. LVS gained more than $2 yesterday after announcing a special dividend. WYNN went up more than +3% today. COST climbed more than +6% after announcing its own special dividend. Among the high-flyers, GOOG added more than $25 in the past two days while PCLN ascended 3.35% today.

We locked in a +131% win on FB calls yesterday:

• 10:33 | Ecstatic Plays FB ($26.00) Sold to Close 1130C23 Nov 23 calls, at $3.00 +131%
• 07:30 | Ecstatic Plays FB ($52.65) Sold to Close 1130C23 Nov 23 calls, at $2.70 +108%

and did a quick intraday scalp on GOOG calls today:

• 12:31 | Ecstatic Plays GOOG ($683.50) Sold to Close 1130C675 Nov 675 calls, at $10.50 +52%
• 12:18 | Ecstatic Plays GOOG ($682.30) Sold to Close 1130C675 Nov 675 calls, at $9.35 +36%

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The Dow was up +106.98 points; SPX added +10.99 points; Nasdaq gained +23.99 points:

FDN (internet) added +1.31%. XME (metals and mining) bounced +0.96%. IGV (software) went up +1.21%. GLD (gold) slid 1.28% while SLV (silver) was down 0.94%.

SPX

SPX added +10.99 points to close at 1409.93. It barely closed above its daily MAs. The MACD glided up.

Nasdaq

Nasdaq gained +23.99 points to close at 2991.78. Its 10-day MA turned up and the MACD went higher.

The market seems to be hanging on every comment from Congress regarding solving the "fiscal cliff". There appears to be money on the sideline waiting to be deployed. The quick pullback yesterday was shallow and the buying today was of higher volume. After all, the market did suffer a sharp drop in October until mid-November. We'll have to see if the Congress can continue to make progress and get a bi-partisan budget deal done soon. But, the market sentiment is becoming a little more positive. Techs have been beaten down quite a bit along with AAPL's dramatic drop. It seems like investors are making their picks at the tech sector. Industrials are still lagging. Biotechs and retails are still among the strongest sectors. KORS and CELG seem to be ready for another leg higher.

Good night and HappyTrading! ™

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