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When Good News Don't Help! SPX, Nasdaq, BIDU, YOKU, CTRP, SINA, PCLN, GMCR, WYNN, LVS, NFLX, GS

|Includes:Baidu, Inc. (BIDU), CTRP, GMCR, GS, LVS, NFLX, PCLN, SINA, WYNN, YOKU

This morning, the market gapped up at open.  First, Germany approved expanding the powers of the eurozone's bailout fund.  Second, jobless claims fell.  But, as soon as the market opened, selling started.  Chinese internet stocks were hit the hardest, as both Chinese and US governments may be probing into how accounting is being conducted in these companies.  YOKU fell 18.31%; BIDU lost 9.17%; SINA dropped 9.7%; and CTRP was down over $3 intraday.  Because the market has been so volatile, we have been trading on both sides.  Today, we locked in some profits on our positions, including an overnight double on CTRP Oct 35 puts:

  • September 29, 2011
  • 07:51 | HappyTrading CTRP ($31.00) Sold to Close 10P30 Oct 30 puts, at $4.50 +84%
  • 07:31 | HappyTrading INFY ($52.60) Sold to Close 10C52.5 Oct 53 calls, at $2.65 +23%
  • 06:47 | HappyTrading SLV ($29.70) Sold to Close 10P30 Oct 30 puts, at $2.25 +21%

In the Trading Room, we were trading NFLX weekly puts:
September 29, 2011 7:06 AM
NFLX
got a good scalp on the weekly 120 puts

These NFLX weekly 120 puts were just about $2 15 minutes after the market opened.  They traded as high as $12.15 and closed at $7.05.  NFLX could soon be a double-digit stock (going under $100)!

Other big movers include PCLN -4.03 (down more than $35 intraday); LVS -5.35%; WYNN -7.34%; GMCR -7.21%.

It was not all downside trading.  Financials stocks were actually pretty strong, with GS finishing up +3.69%.  Late buying in the last hour brought the market back into the green.  However, Nasdaq stayed in the red.

The Dow was up +143.08 points; SPX added +9.34 points; Nasdaq fell 10.82 points:

XLF (financials) gained +2.81%.  SLV (silver) and GLD (gold) bounced a bit.  USO (oil) climbed +2.3%.  SOXX (semiconductors) and FDN (internet) both went down.  XLE (energy) was up almost +1%.

SPX

SPX added +9.34 points to close at 1160.4.  It closed below its daily MAs.  The MACD was flat.

Nasdaq

Nasdaq fell 10.82 points to close at 2480.76.  It also closed below its daily MAs and its MACD slid.

This market is still very much range-bound.  SPX tested 1140 today, but, it would not break, and closed back up above 1160 again.  Things are moving pretty fast and we are still seeing big intraday swings.  The sentiment, though, is not very positive.  Given today's good news from Europe and on the jobs front (well, as least it was not negative news), the market had a really hard time holding on to its gains.  SPX went negative for about an hour, intraday.  So, we are trading lightly and keeping lots of cash.  Things move so much intraday anyway, you really don't have to trade big to make decent money.  We'll probably see a mixed market tomorrow again.  Maybe a small bounce in the morning, but, bounces don't seem to hold right now.  Keep your power dry, and wait for this market to break out of its range. 

Good night and HappyTrading! ™

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Stocks: BIDU, YOKU, CTRP, SINA, PCLN, GMCR, WYNN, LVS, NFLX, GS