The market started the day on the upside. But, it soon lost the bullishness. The strange thing all day was that VIX was down. VIX went below 24 in the morning and closed just above 25. As expected, Fed left interest rates unchanged. But, soon after the Fed announcement, stock accelerated downward.
Chinese stocks, and China-related stocks, were weak again: BIDU -4.25%, SINA -2.43%, SOHU -5.02%. Both WYNN and LVS went lower as well. We took a quick trade on WYNN puts and took the profits a little early:
- December 13, 2011
- 12:02 | HappyTrading WYNN ($105.60) Sold to Close 12P110 Dec 110 put, at $5.00 +47%
- 11:52 | HappyTrading WYNN ($105.60) Sold to Close 12P110 Dec 110 put, at $4.90 +44%
- 07:50 | HappyTrading WYNN ($107.70) Bought to Open 12P110 Dec 110 put, at $3.40
In the Trading Room, we traded puts on AMZN and GMCR:
December 13, 2011 6:50 AM
December 13, 2011 7:24 AM
December 13, 2011 8:03 AM
took a nice trade on the puts...
55 puts flew since this morning...
December 13, 2011 8:14 AM
December 13, 2011 10:39 AM
55 puts now $5!!
Mining stocks were weak again: CLF -4.29%; ANR -3.93%; WLT -5.38%
The Dow was down 66.45 points; SPX lost 10.74 points; Nasdaq dropped 32.99 points:
XME (metals and mining) fell 3.65%. Both GLD (gold) and SLV (silver) dropped again. OIH (oil services) was down 1.88%. SOXX (semiconductors) continued to sink, down 2.36%. XLF (financials) slipped 1.41%.
SPX fell 10.74 points to close at 1225.73. Its daily MAs and MACD went down.
Nasdaq dropped 32.99 points to close at 2579.27. It closed below its daily MAs. Its MACD turned down.
There was just no buyers on the market today! (Well, except right at the open.) Even though VIX was weak all day, the market could not rally after Fed's rate announcement. With only about 2 weeks left in trading this year, the market seems to be just stuck in a wide range. Tech, mining, energy, financials are all turning weaker. Asian markets have broken down. Will the US market follow? A lot of people keep looking for a Santa rally, thinking that the fund managers will need to chase performance. But, perhaps the financials crisis in Europe is just too much of an unknown for the buyers to stay in. The strong rally in October may have gotten some fund managers worry about their performanace as they were underperforming the market indices. But, perhaps now, it is easier to just drive the market indices back down.
This market is still very volatile, and we could still see the market rally as VIX is at its lowest since August. We're trading small right now until the market either breaks out or breaks down.
Good night and HappyTrading! ™