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Another Good Day On A Red Day! SPX, Nasdaq, IOC, AMZN, BIDU, YOKU, SOHU, FAZ, GR, CLF, WLT, X, FCX

|Includes:AMZN, BIDU, CLF, FAZ, FCX, GR, InterOil Corporation (IOC), SOHU, WLT, X, YOKU

Wow, another big down day, down more than 3%!  The market basically closed at where it gapped down for the open.  The fast turn in the last hour yesterday really foreshadowed today's downturn.  We picked up some YOKU Oct 17 puts and cashed them out this morning for an overnight +90% profit:

  • September 22, 2011
  • 07:24 | HappyTrading YOKU ($14.60) Sold to Close 10P17 Oct 17 put, at $3.30 +69%
  • 06:52 | HappyTrading YOKU ($14.00) Sold to Close 10P17 Oct 17 put, at $3.70 +90%

In the Trading Room, we traded BIDU and AMZN weekly puts (expiring tomorrow), and also IOC Oct 50 puts:
September 22, 2011 7:05 AM

good morning!



September 22, 2011 8:25 AM
could come down to $125; got a quick scalp on the weekly 130 puts

September 22, 2011 11:18 AM
weekly 130 puts from $2.85 to $10 in 3 hours!
(BIDU went all the way to below $120!)

weekly 225 puts from $3.5 to $5.5 in 1 hour

September 22, 2011 8:38 AM
could come down more...

September 22, 2011 12:02 PM
down $3 in 3 hours, still falling

Bagger Vance scored a couple of big winners today.  On Monday, he picked up some FAZ weekly 58 calls and some GR Oct 105 calls.  FAZ popped above $70 and went as high as $74.39 today.  That was good for a +326% gain!  Last night, UTX announced a $16.5 billion deal to buy GR, and GR shares popped over $120 this morning.  Those GR Oct 105 calls were cashed out for a +121% win:

  • September 22, 2011
  • 07:04 | Bagger Vance GR ($121.00) Sold to Close GR OCT 104 CALL Oct 104 calls, at $15.50 +121%
  • 06:52 | Bagger Vance FAZ ($71.00) Sold to Close FAZ WEEKLY 58 CALL Sep 58 calls, at $13.20 +326%

Overall, it was a very good day for us, as member jjvoit exclaimed:
September 22, 2011 12:35 PM
out IOC at 4.8 and NFLX at 7, couldve been better but tomorrow is another day. Im still not a big fan of holding overnight in this market. Thanks Happy.

September 22, 2011 12:45 PM
couldve been better but still very happy with the day, had Sohu and the Yoku as well with Happy.

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Mining stocks were pounded into the ground!  CLF, so far this week, fell from $77.895 to $55.19, down 29.1%!!  WLT went from 82.19 to $64.1, down 22% (still no buyout deal?).  X dropped from $27.74 to $21.99, down 20%.  FCX tumbled 22.7%, from $41.59 to $32.14.

The Dow was down 391.01 points; SPX dropped 37.2 points; Nasdaq stumbled 82.52 points:

It was a big sea of red today!!  GDX (gold miners) slumped 7.75%.  XME (metals and mining) dropped 7.86%.  XLE (energy) fell 5.64% and OIH (oil services) tumbled 6.62%.  USO (oil), GLD (gold), and SLV (silver) all swooshed lowered.  Even the might techs tripped down over 3%, FDN (internet) -3.37% and SOXX (semiconductors) -3.45%.  (On days like this, I get to use all my "downside" verbs!)


SPX dropped 37.2 points to close at 1129.56.  Its daily MAs and MACD went down.


Nasdaq tumbled 82.52 points to close at 2455.67.  It closed below its daily MAs.  The MACD curved lower.

The market has been incredibly volatile.  VIX popped these past 2 days and closed above 41 today.  Both SPX and Nasdaq closed below their respective daily MAs.  In the Trading Room, I called out the support at SPX 1120:
September 22, 2011 11:20 AM
SPX 1120
should see some support...

September 22, 2011 11:22 AM
1120 to 1130 in a blink!

SPX 1120 was our cue to exit the weekly puts, and just in time.  There are plenty of trades on both side; check out the chart below:

This is a 6-month daily chart on SPX.  Since the big fall in July that bottomed in early August, the market changed direction every few days between the range of 1100 to 1225.  The momentum has now once again shifted to the downside.  Tomorrow is Friday, I suspect we will see some bounces, as shorts locked in their profits.  However, the bounces may not hold, as weak holders are probably still trying to get out.  It'll likely be another volatile day tomorrow.  If SPX 1120 does not hold this time, the market could be looking for capitualtion further down!

Good night and HappyTrading! ™

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