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Market Gets A Relief Rally: SPX, Nasdaq, OXY, EOG, RIG, CF, MOS, MON, POT, GS, BLK, WFC, JPM, BLK, ICE, CME, NDAQ

|Includes:BLK, CF, CME, EOG, GS, ICE, JPM, MON, MOS, NDAQ, Occidental Petroleum Corporation (OXY), POT, RIG, WFC

As discussed on Tuesday, we were looking for a test to SPX 1280 and then a bounce.  SPX tested 1280 yesterday, and today, we got the bounce.  Energy and financial stocks were strong:  EOG +1.69%, OXY +1.43%, RIG +3.98%, GS +1.47%, BLK +1.39%, WFC +3.39%, JPM +1.46%.  Fertilizers also jumped as US Department of Agriculture forecast tighter supplies:  CF +4.2%, MOS +4.84%, POT +3.98%, MON +2.8%.

We locked more profits on our downside plays yesterday and this morning, including a +118% win on RIMM June 40 puts:

  • June 09, 2011
  • 07:31 | HappyTrading NFLX ($260.70) Sold to Close 06P260 Jun 260 puts, at $5.50 +10%
  • June 08, 2011
  • 07:46 | HappyTrading MCP ($53.60) Sold to Close 06P55 Jun 55 puts, at $3.10 +29%
  • 07:19 | HappyTrading RIMM ($37.90) Sold to Close 06P40 Jun 40 puts, at $3.20 +108%
  • 07:07 | HappyTrading RIMM ($37.50) Sold to Close 06P40 Jun 40 puts, at $3.35 +118%

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The Dow finished up +75.42 points; SPX added +9.44 points; Nasdaq gained +9.49 points:

MOO (agriculture) led the market with a +2.22% gain.  XLF (financials) added +1.15%.  OIH (oil services) was up +2.18%.  GDX (gold miners) advanced +1.76%.  XLE (energy) climbed +1.36%.

SPX

SPX added +9.44 points to close at 1289.  Its daily MAs and MACD went down.

Nasdaq

Nasdaq gained +9.49 points to close at 2684.87, above 2675.  Its daily MAs and MACD were also down.

Although the market bounced off of SPX 1280, it does not necessarily mean it'll continue to go higher from here.  SPX 1300 will now be the nearest resistance to test.  The market could get volatile in the next few days.  On the long side, agriculture and energy stocks look quite strong.  Financials are showing signs of life, but, it's hard to buy them here.  BLK looks pretty good.  Exchanges also drew buyers in today:  ICE +3.09%, CME +1.53%, NDAQ +3.16%.

Good night and HappyTrading! ™

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Stocks: OXY, EOG, RIG, CF, MOS, MON, POT, GS, BLK, WFC, JPM, ICE, CME, NDAQ