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  • Dow Closes Above 12,000! SPX, Nasdaq, PCX, ANR, MEE, CLF, CAVM, ARMH, CMI, APKT, BRCM, ERTS, POT, MOS, MON 0 comments
    Feb 1, 2011 7:39 PM | about stocks: PCXCQZQ, MEE, CLF, CAVM, ARMH, CMI, APKT, AVGO, EA, POT, MOS, MON

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    The market gapped up at open today, on better-than-expected manufacturing data (ISM), and continued higher throughout the day.  The Dow closed above 12,000 and S&P500 closed above 1300!  Mining stocks were very strong.  Gold and silver both bounced.  Oil, however, gave back some gains from geo-political problems in Egypt.  This morning, PCX's quarterly results beat the street's estimates.  Coal stocks were mostly higher, again:  PCX +8.67%, ANR +3.67%, MEE +3.01%, CLF +4.89%.

    Yesterday and today, we cashed out on some of our plays, on both long and short sides, including a +106% win on POT:

    • February 01, 2011
    • 07:46 | HappyTrading SNDK ($47.00) Sold to Close 02P50 Feb 50 put, at $3.65 +39%
    • 07:11 | HappyTrading RIMM ($58.94) Sold to Close 02P60 Feb 60 put, at $2.25 +32%
    • January 31, 2011
    • 07:21 | HappyTrading POT ($177.30) Sold to Close 02C170 Feb 170 calls, at $9.90 +106%
    • 06:40 | HappyTrading SNDK ($46.13) Sold to Close 02P50 Feb 50 put, at $4.50 +72%

    Last night, CAVM reported strong earnings, sending its shares up +8.62% today!  This morning, ARMH also delivered a strong quarter; its shares jumped +8.35%.  CMI reported record sales and profit for 2010.  Its shares initially traded down as much as $4, but, ended up $1.53.  After the market, APKT beat its earnings estimates and raised guidance for 2011.  APKT traded +3.68% higher this evening.  BRCM shares fell more than 6% after giving disappointing outlook.  ERTS raised its outlook and announced a $600 million share buyback program; its shares soared nearly +10% after market.

    The Dow was up +148.23 points; SPX added +21.47 points; Nasdaq jumped +51.11 points:

    SOXX (semiconductors) gained +2.57%.  INX2 (internet) rose +1.57%.  XME (metals and mining) added +2.77%.  Both Bld (gold) and SLV (silver) bounced.  SWH (software) went up +2.32%.  XLF (financials) advanced +2.07%.  FXI (Chinese ADRs) was up slightly.


    SPX added +21.47 points to close at 1307.59, above the 1300 level.  The daily MAs and MACD turned higher.


    Nasdaq gained +51.11 points to close at 2751.19, just above 2750.  Its daily MAs and MACD went up.

    Just when the market looked like it was finally breaking down, the market got a gift from the manufacturing sector, a strong ISM number!  Now, instead of breaking down, the market looks like it's breaking out further.  Both the Dow and SPX closed above their respective key resistance (mentioned above).  Strong earnings continue to come in across the board.  So, how high can this market run before taking a real break?  This weekend, in my Market Forecast, I was very cautious and was actually looking for the market to pull back further.  We held some puts over the weekend.  Luckily, we weren't greedy and started taking profits on Monday (SNDK +72%), and, had enough cushion in the puts to get most of them out today with profits.  From Wednesday to Friday, we'll get more data on the jobs front, which could determine whether the market will continue higher.  Nevertheless, the market took a good jump today and we should see some profit-taking tomorrow.  But, if economic data remain bullish, we should continue to see dip-buyers on pullbacks.  VIX was down today, but, still closed above 17.  After a big day like today, we should see some volatility to follow.

    We'll focus on individual stocks that still show strength and room to run, as long as the economic data continue to support this rally.  For instance, the fertilizers seem to be ready for a new break out.  POT closed above $180 to day, at $182.77.  MOS, after a quick pullback, is right back to the recent high.  MON closed above $76 and is showing a new breakout.

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

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