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Disappointing Economic Data Sink Stocks! SPX, Nasdaq, SINA, SOHU, AAPL, CAT, JOYG, CLF, BTU, ANR, POT, CF, MOS

|Includes:AAPL, CAT, CF, CLF, JOY, MOS, POT, Sina Corporation (SINA), SOHU

Just yesterday, the markets were cheering Greek debt reconstruction news from Europe; today, investors suffered buyer's remorse on weak economic data.  Both ADP employment and manufacturing data were weak.  The selling started at market open and never let up.  Mining stocks got hit the hardest today:  CAT -4.31%, JOYG -4%, CLF -3.08%, BTU, -3.41%, ANR -2.54%.  Fertilizers gave back some of their recent gains:  POT -3.32%, MOS -3.19%, CF -3.69%.

In the morning, pockets of strength persisted, for a couple of hours.  Chinese internets were seeing some buying, with SINA and SOHU leading the pack.  However, they mostly ended in the red, with the exception of SINA, which finished up +1%.  AAPL pushed higher from yesterday's pop on new product being introduced at the Apple Conference next week; but, it, too, closed down at the end of the day.  We cashed out on our AAPL calls in the morning:

  • June 01, 2011
  • 06:43 | HappyTrading AAPL ($350.90) Sold to Close 06C345 May 345 calls, at $9.90 +56%

The Dow was down 279.65 points; SPX tumbled 30.65 points; Nasdaq fell 66.11 points:

XME (metals and mining) dropped 3.54%.  XLE (energy) lost 2.39%.  SOXX (semiconductors) was down 3.03%.  OIH (oil services) fell 2.39%, while USO (oil) slipped 2.42%.  FXI (Chinese ADRs) was down nearly 2%.

SPX

SPX tumbled 30.65 points to close at 1314.55.  It closed below 1320 and below its daily MAs.  The MACD turned down.

Nasdaq

Nasdaq lost 66.11 points to close at 2769.19, below 2775.  Its MACD also went lower.

In one swift move, the broader market gave back a whole week's worth of gains.  Commodity sectors sold off sharply and may see some bounces tomorrow.  However, the downward momentum could draw more selling.  So, there's no hurry to buy the rebounds just yet.  We should see SPX test the support at 1310.  It may take a couple of more days to determine whether this support will hold.  Financial stocks were very weak once again.  XLF (financial EFT) gave up all of last week's gain and closed below its support.  This is could be bearish for the overall market.  Be very careful with longside trades.  Keep lots of cash, and, if you have not picked up some downside trades, you still have time.  I think this market has more downside to go.

Good night and HappyTrading! ™

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Stocks: SINA, SOHU, AAPL, CAT, JOY, CLF, BTUZQ, POT, CF, MOS