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  • Markets Rally Big On "Fiscal Cliff" Deal + December 2012 Monthly Wrap-Up: AAPL, AMZN, NTAP, VMW, GLD, FIO, APC 0 comments
    Jan 3, 2013 12:10 AM | about stocks: AAPL, AMZN, NTAP, VMW, GLD, FIO, APC

    On Monday, stocks popped high on hopes of a deal to avoid the "fiscal cliff". Senate passed a bill on New Year's Eve, leaving House no time to make any more political maneuver. Yesterday evening, House also passed the bill without any changes. As I said in my Market Forecast this weekend, "While there are many analysts that think the markets may sell on the news even if a deal is reached, I think this market will rally if we do get a deal to avoid the 'fiscal cliff'. " Indeed, there was no mistake about this rally. SPX popped higher today and never looked back.

    The Dow was up +308.41 points. SPX closed at 1462.52, up +2.54%, while Nasdaq vaulted more than +3%, closing at 3112.26. AAPL went as high as $555 today; that's $45 higher than last Friday's close! The rally was broad-based on solid volume. Every major sector was higher:

    SOXX (semiconductors) popped more than +4%. FDN (internet) jumped more than +3%. XLE (energy) climbed +2.21%, while OIH (oil services) bounced almost +3%. XLF (financials) gained +2.9%.

    This two-day rally has gone very far. I think we should see some profit-taking tomorrow. Technically speaking, just about every sector is short-term overbought. I suspect that there will still be some individual stocks that will push higher. For those that missed today's pop, they will be looking for lagging stocks to buy into. VIX dropped sharply and is testing the support between 15 and 14. This is an ideal place for the rally to continue, after a bit of consolidation.

    We had a nice month of trading in December. Especially in the past week, we've hit many triple-digit winners, including GLD, VMW, NTAP, AMZN and AAPL. Here are the closed trades for the month:

    • 12:18 | Ecstatic Plays AAPL ($533.60) Sold to Close 0104C515 Jan 515 calls, at $21.10 +107%
    • 07:05 | Ecstatic Plays AAPL ($525.00) Sold to Close 0104C515 Jan 515 calls, at $15.00 +47%
    • 07:33 | HappyTrading APC ($73.15) Sold to Close 01C75 Jan 75 calls, at $1.35 -52%
    • 08:15 | Ecstatic Plays AMZN ($251.30) Sold to Close 1228P255 Dec 255 put, at $4.80 +103%
    • 08:12 | Ecstatic Plays AMZN ($251.00) Sold to Close 1228P255 Dec 255 put, at $5.00 +111%
    • 07:55 | Ecstatic Plays CMG ($291.00) Sold to Close 1228C290 Dec 290 calls, at $3.50 -35%
    • 12:39 | Ecstatic Plays PCLN ($617.70) Sold to Close 1228P615 Dec 615 put, at $8.20 -25%
    • 06:57 | Ecstatic Plays QIHU ($26.55) Sold to Close 12C25 Dec 25 calls, at $1.60 +45%
    • 06:55 | HappyTrading NTAP ($34.50) Sold to Close 12C32 Dec 32 calls, at $2.55 +130%
    • 06:42 | HappyTrading VMW ($98.30) Sold to Close 12C90 Dec 90 calls, at $8.20 +110%
    • 06:39 | Ecstatic Plays GLD ($161.70) Sold to Close 12P165 Dec 165 put, at $3.40 +102%
    • 09:19 | HappyTrading FIO ($24.50) Sold to Close 12C23 Dec 23 calls, at $1.60 +52%
    • 09:17 | HappyTrading FFIV ($97.00) Sold to Close 12C95 Dec 95 calls, at $2.64 +20%
    • 08:02 | HappyTrading FIO ($24.30) Sold to Close 12C23 Dec 23 calls, at $1.40 +33%
    • 12:38 | HappyTrading CLF ($34.00) Bought to Open 12C34 Dec 34 calls, at $0.92 (EXPIRED)
    • 12:03 | HappyTrading FB ($27.05) Sold to Close 12P28 Dec 28 put, at $1.35 +17%
    • 09:58 | HappyTrading APC ($75.00) Sold to Close 12C75 Dec 75 calls, at $1.26 -43%
    • 09:30 | Ecstatic Plays AAPL ($531.00) Sold to Close 1214C535 Dec 535 calls, at $2.90 -47%
    • 07:17 | HappyTrading FB ($28.40) Bought to Open 12C28 Dec 28 calls, at $1.05 (EXPIRED)
    • 09:51 | Ecstatic Plays GOOG ($699.00) Sold to Close 1214C690 Dec 690 calls, at $10.00 +33%
    • 07:19 | Ecstatic Plays GOOG ($698.20) Sold to Close 1214C690 Dec 690 calls, at $11.00 +47%
    • 06:48 | Ecstatic Plays AMZN ($247.00) Sold to Close 1214P250 Dec 250 put, at $4.70 +47%
    • 11:15 | Ecstatic Plays AMZN ($248.60) Sold to Close 1214P250 Dec 250 put, at $4.00 +25%
    • 09:16 | Ecstatic Plays MOS ($53.70) Sold to Close 1207C52.5 Dec 53 calls, at $1.20 (EXPIRED)
    • 08:58 | HappyTrading APC ($75.90) Sold to Close 12C72.5 Dec 73 calls, at $3.85 +75%
    • 06:46 | Ecstatic Plays CMG ($272.20) Sold to Close 1207C270 Dec 270 calls, at $3.50 +30%
    • 06:40 | HappyTrading NFLX ($89.50) Sold to Close 12C89.5 Dec 90 calls, at $5.35 +22%
    • 08:04 | HappyTrading NTES ($40.45) Sold to Close 12P42 Dec 42 put, at $2.12 +41%
    • 12:41 | HappyTrading APC ($74.80) Sold to Close 12C72.5 Dec 73 calls, at $3.10 +41%
    • 09:41 | HappyTrading PNRA ($157.00) Sold to Close 12P155 Dec 155 put, at $2.60 +4%
    • 08:26 | HappyTrading GOOG ($687.50) Sold to Close 1207P685 Dec 685 put, at $4.00 -27%
    • 07:51 | HappyTrading PNRA ($155.50) Sold to Close 12P155 Dec 155 put, at $3.30 +32%
    • 07:48 | Ecstatic Plays AAPL ($550.00) Sold to Close 1207P555 Dec 555 put, at $11.30 +26%
    • 07:42 | Ecstatic Plays AAPL ($549.00) Sold to Close 1207P555 Dec 555 put, at $12.35 +37%
    • 12:20 | HappyTrading NFLX ($87.50) Sold to Close 12C85 Dec 85 calls, at $6.00 +36%
    • 12:09 | HappyTrading NFLX ($86.50) Sold to Close 12C85 Dec 85 calls, at $5.10 +16%
    • 10:44 | HappyTrading GLD ($164.10) Sold to Close 12P165 Dec 165 put, at $2.25 +8%
    • 12:42 | Ecstatic Plays NFLX ($76.18) Sold to Close 1207P80 Dec 80 put, at $4.50 +38%
    • 10:18 | HappyTrading IDCC ($43.70) Sold to Close 12C42.5 Dec 43 calls, at $2.07 +34%

    (to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video)

    LNKD and NFLX stood out today as they went the opposite direction as the broader market and missed the big rally. LNKD was downgraded by Barclays, and closed down 1.89%. NFLX reversed the morning gains and closed down 0.63% for the day. We'll watch these two stocks tomorrow to see if buyers would try to come in and push these higher, as they are usually good momentum stocks.

    Don't be too eager to trade tomorrow. If things continue to push higher at open, you probably won't want to chase things. If things are soft at open, you can probably get better prices later in the day if you're looking for new trades.

    Good night and HappyTrading! ™

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    Stocks: AAPL, AMZN, NTAP, VMW, GLD, FIO, APC
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