The market continued to push higher today, to new multi-year highs. There were many big breakouts today in various sectors. WTW soared to a new all-time, up a whopping +45%, after reporting a blowout quarter! TBL jumped +30%, also delivering a strong quarterly report. NVDA continued to plow higher with a strong Q1 forecast, up nearly +10%. SJM gained +4.22% with solid earnings boosted by higher coffee prices.
Besides breakouts on blowout earnings, many others broke out on technicals. SHLD popped to nearly $95 before settling at $92.87, up +4.58%. DECK vaulted above $90/share, adding +7.5%. APC traded up +5%. RIG advanced +3.29% while DO rose +2.9%. In the Trading Room, we were calling this breakouts early:
February 17, 2011 6:58 AM
February 17, 2011 7:32 AM
February 17, 2011 8:04 AM
feb 85 calls from $1.5 to $4; we might see DECK at $90+ soon...
February 17, 2011 8:24 AM
February 17, 2011 8:27 AM
February 17, 2011 9:18 AM
has a lot of room to go higher!
These trades happened fast, especially during the expiration week. For instance, I got into DECK February 85 calls at $1.5; and, just 30 minutes later, I got out at $4.2 for a +180% profit!
DECK did close above $90 and those Feb 85 calls closed at $5.6!
These type of trades during the expiration week move very fast. I've tried to published them before, but, members have reflected that they are hard to follow, as they move so fast. Therefore, I will mostly keep these trades in the Trading Room only and publish trades that are easier to get into. For instance, we got into RIMM March 67.5 calls yesterday and pocketed a +50% gain today:
February 17, 2011
09:11 | HappyTrading RIMM ($69.66) Sold to Close 03C67.5 Mar 68 calls, at $3.90 +50%
So, if you're more experienced in options trading and would like to participate in some fast movers, you can catch some nice daytrades in the Trading Room, especially during the expiration week. Otherwise, options that are due further out in the future can still produce similar % gains and are probably less stressful; but, may require a little more patience. When I do publish daytrades, I will state in the alerts that the trades may be for intraday. There is still 1 week left with our Free Trading Room Access. You can subscribe to any one of our services and try out the Trading Room for free!
Silver and gold popped higher today. SLV (silver ETF) added +3.57%, trading at a new all-time high!
The Dow was up +29.97 points; SPX added +4.11 points; Nasdaq gained +6.02 points:
Most sectors closed in the green. SOXX (semiconductors) rose +1.43%. OIH (oil services) added +2.1% while USO (oil) was up +1.49%. XLE (energy) rose +0.99%. FXI (Chinese ADRs) advanced +0.83%.
SPX added +4.11 points to close at 1340.43. The daily MAs adn MACD pushed higher.
Nasdaq gained +6.02 points to close at 2831.58. The daily MAs and MACD also went up.
Although the market pushed up to multi-year highs, VIX went above 17 today. It did come back down, but, still stayed above 16. This is the level that I have been talking about for a while. The support for VIX at 16 seems to be very strong and has not really been broken for 3 years! We'll continue to trade with the market and stay cautious. As I said in the Market Forecast this week, "We could see a stock-picking environment where certain stocks are breaking higher while others see some profit-taking, and, the market can still glide up." Today, while there were many breakouts, we saw many stocks trade lower. For instance, SFLY was down 6%; FFIV shed $2.75; NFLX went down $2 on a downgrade; both SINA and SOHU kept sliding; AAPL was down almost $5. This is a very nice market environment, as we can find good trades on both sides, which makes expiration week especially interesting! Tomorrow is the last trading day for February monthly options. Should be another volatile day. Let's find more winners!