After hitting below 1840 on the SPX on Tuesday morning, buyers started to trickle in. Today, after the Fed minutes indicated that it would be cautious towards raising interest rates, stocks bounced. Given that techs have been tumbling, buyers piled in on internet and biotech stocks. PCLN popped $47! CELG jumped more than $9. BIIB was up over +5%. REGN gained nearly $20. FSLR got an target boost on Tuesday and popped right back up above $73. BIDU, NTES, and QIHU have been leading the bounce in Chinese internet stocks. WYNN vaulted +3.5% today. VIPS bounced more than $20 in the past 2 days!
While things bounced we locked in our profits on the downside plays just in time (mostly on Monday)! Our puts on biotechs and financials rewarded us handsomely:
- 11:29 | HappyTrading AMGN ($119.80) Sold to Close 04P125 Apr 125 put, at $5.75 +77%
- 11:18 | Ecstatic Plays CELG ($136.00) Sold to Close 04P145 Apr 145 put, at $9.40 +127%
- 11:07 | HappyTrading AMGN ($118.00) Sold to Close 04P125 Apr 125 put, at $7.08 +118%
- 08:11 | HappyTrading GS ($160.10) Sold to Close 04P165 Apr 165 put, at $5.80 +115%
All 3 trades gave us triple-digit gains!
The Dow was up +181.01 points; SPX gained +20.22 points; Nasdaq jumped +70.91 points (+1.72%!!):
BTK (biotech) jumped +3.81%! IGV (software) bounced +1.84%. FDN (internet) popped +2.44%.
SPX gained +20.22 points to close at 1872.18. It closed above its daily MAs. The MACD flattened.
Nasdaq popped +70.91 points to close at 4183.9. It barely closed above its 10-day MA.
Even though stocks bounced, Nasdaq is still deep in a bearish formation. SPX, on the other hand, seems much healthier; but, it is still, at best, neutral. AA climbed +3.75% after reporting its earnings. The whole metals and mining sector has been largely ignored in the past year. It is now starting to show some signs of awakening. Perhaps some of the funds are starting to come in from techs. We'll start to pay more attention as well. JOY and CMI look very interesting.
Good night and HappyTrading! ™