The market popped higher at open today and managed to keep most of the gains. The rally was broad-based. Yesterday, in our Trading Room, I commented:
June 13, 2011 11:11 AM
wants to bounce
We cashed out the rest of our June downside plays, including a +127% win on MCP June $52.5 puts:
- June 13, 2011
- 11:06 | HappyTrading BIDU ($119.95) Sold to Close 06P120 Jun 120 put, at $3.10 +31%
- 08:53 | HappyTrading MCP ($47.80) Sold to Close 06P52.5 Jun 52.5 put, at $5.00 +127%
BIDU shot up +5.75% today! Other Chinese internet stocks also rebounded: SINA +6.39%, SOHU +6.44%, YOKU +8.29%. MCP was up +4.15% and trading even higher after the market today. We got out of the puts just in time!
Energy and mining stocks led the market in today's rally. Coal stocks were very strong: ACI +4.1%, CLF +3.2%, WLT +2.43%, ANR +4.5%.
The Dow was up +123.14 points; SPX added +16.04 points; Nasdaq gained +39.03 points:
SOXX (semiconductors) gained almost +2%. XME (metals and mining) jumped +2.75% while XLE (energy) added +2.13%. USO (oil) climbed +2.2%. SLV (silver) advanced +2.36%. FXI (Chinese ADRs) went up +1.2%.
SPX added +16.04 points to close at 1287.87, above 1280. The MACD turned up.
Nasdaq gained +39.03 points to close at 2678.72. Its MACD flattened.
The market had a nice day today. SPX closed above 1280 and Nasdaq closed above 2675, the respective support levels that we looked at last week for these two market indices. However, VIX closed above 18, which is still dangerous. SPX really struggled with 1290 today. If the market continues to bounce, we should see resistance between SPX 1300 and 1310. In a stronger market environment, I like the agriculture sector (CF, AGU, POT, MOS, MON).
Good night and HappyTrading! ™