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Oil Tumbles Below $100! SPX, Nasdaq, USO, GLD, SLV, GOLD, SLW, PAAS, SSRI, APA, OXY, HES, RIG, DO, NOV, SLB

|Includes:APA, DO, GLD, GOLD, HES, NOV, OXY, PAAS, RIG, SLB, SLV, SLW, SSRI, The United States Oil ETF, LP (USO)

Oil took a huge fall today, down almost 10% and closed below $100/barrel!  Commodity prices were crushed across the board.  Silver continued to tumble and gold finally got hit as well.  Silver closed below $35 and gold closed below $1480.  These prices fell "fast and furious"-ly.  Just last week, silver touched $50 and gold traded above $1570!!  SLV came down to $33.72 from above $48 last week.  GLD dropped $4.26 today.  We exited early on our play on GLD puts, but, did get a +48% profit:

  • May 05, 2011
  • 07:37 | HappyTrading GLD ($146.60) Sold to Close 05P148 May 148 put, at $2.86 +48%

Silver and gold miners were both weak:  GOLD -4.52%; PAAS -4.63%; SLW -5.33%; SSRI -5.87%.

Energy stocks still can;t find many buyers.  APA sank anther 3%; OXY was down 2.69%; and, HES slid 1.18%.  Oil services tried to bounce, as RIG was up $3 intraday and DO turned green.  But, as the broader market sold off before the close, they lost most of their intraday gains:  RIG +0.45%; DO -1.19%; SLB -2.3%; NOV -1.74%.

The Dow was down 139.41 points; SPX fell 12.22 points; Nasdaq dropped 13.51 points:

SLV (silver) was down another 11.89% while GLD (gold) lost 2.88%.  USO (oil) plummeted 9.11%.  XME (metals and mining) fell 2.17%.  XLE (energy) lost 2.08%.  SOXX (semiconductors) managed to stay green.  FXI (Chinese ADRs) slid 0.82%.

SPX

SPX fell 12.22 points to close at 1335.1, below 1340.  It closed at its 20-day MA.  The MACD curved down.

Nasdaq

Nasdaq dropped 13.51 points to close at 2814.72, below 2825.  It managed to stay above its 20-day MA.  Its MACD also turned lower.

On Tuesday, I mentioned that we could see more selling as the market indices hardly moved.  Well, between Wednesday and Thursday, the pullback became more significant.  VIX finally popped to close above 18, and went above 19 intraday.  As discussed in our Trading Room in the past couple of days, this was more what I was looking for.  However, SPX closed below 1340, which is a caution flag.  The latest data in job numbers have not been good.  We'll get the unemployment rate tomorrow.  If it stays under 9%, I think we'll see some bounces tomorrow.  If it pops above 9%, even if we get bounces, they may not hold; and, we should look for more downside plays.  As a sector, OIH (oil services) has turned bearish.  Financials have not participated in the recent rally at all and could easily break down.

Good night and HappyTrading! ™

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Stocks: USO, GLD, SLV, GOLD, SLW, PAAS, SSRI, APA, OXY, HES, RIG, DO, NOV, SLB