This morning, the market opened on the downside and traded in a narrow range throughout the day. A lower-than-expected economic growth from Germany first soured the market's mood. Then, Germany and France proposed a tax on financial transactions, which pressured financial stocks. Gold was up over $20, closing near $1790/ounce.
Stocks were mostly red. Techs were especially weak. GOOG, which announced a $12.5 billion deal to buy MMI yesterday, tumbled $18.23, or 3.27%. GOOG is now below last week's low and basically back to the levels before the recent big earnings pop in July. PCLN dropped $17.03, or 3.31%, closing below $500. NFLX fell almost 3%, closing below $240. Apparel clothing stocks were weak today, with DECK down 5.11% and LULU down 7.39%. SODA stumbled a whopping 23.28%, closing below the $40 mark; last week, SODA reported disappointing earnings and fell from $70 to $45.
In the Trading Room, we traded some quick puts, including 2 intraday doubles. One on GOOG August 540 puts and the other on SODA August 42.5 puts:
GOOG August 540 puts: +98%
SODA August 42.5: +109%
After the market, DELL fell almost 8% on lowered revenue outlook. BCSI reported weaker-than-expected quarterly results and announced that its CEO will be replaced; its shares dropped more than 16%.
The Dow was down 76.97 points; SPX lost 11.73 points; Nasdaq fell 31.75 points:
XME (metals and mining) fell 3.41%. OIH (oil services) lost 2.81%. SOXX (semiconductors) and FDN (internet) dropped 2% and @.28 %, respectively. Both GLD (gold) and SLV (silver) went higher.
SPX
SPX fell 11.73 points to close at 1192.76, under 1200. Daily MAs went down, but, MACD went higher.
Nasdaq
Nasdaq dropped 31.75 points to close at 2523.45, below 2550. Its MACD also went higher.
The market was actually quite impressive today. SPX went down to 1180 and immediately bounced back. GOOG went all the way down to $530 and quickly bounced back to $540 within an hour. However, it does seem that there are people who are still raising cash and are getting out when things bounce. SPX is now trying to stay above 1180. If that level breaks, we could revisit last week's lows. This market is very volatile, so, we are keeping mostly cash and trading lightly. Watch those downside levels. Upside is having a hard time gaining momentum.
Good night and HappyTrading! ™ 