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Market Comes Alive On "Mutual-Fund Monday"!

|Includes:Anthem, Inc. (ANTM), ESRX, GOOG, GRO, MA, MOS, PNC, PRU, SEED, STT, UNH

The market hopped out of the gate this morning on some "happy feet" as home sales jumped in October to their highest level in more than 2-1/2 years!  In addition, gold continued to make new record highs, trading nearly to $1175/ounce intraday.  As gold went higher, gold miners followed up, which in turn inspired other mining sticks to rally.  The dollar traded down accordingly.  These were enough to render another episode of "Mutual-Fund Monday" buying, as fund managers resumed chasing performance and tried to get their cash into positions.

We took more profits this morning on GOOG and MOS.  The GOOG trade was opened back on Nov. 4 when the stock was trading at $540.  Today, we took more profits on our Dec 570 calls for +177% and +201% gain:

November 23, 2009 
07:32 | HappyTrading GOOG ($585.00) Sold to Close GOPLN Dec 570 calls, at $22.00 +201%
06:54 | HappyTrading GOOG ($582.30) Sold to Close GOPLN Dec 570 calls, at $20.20 +177%

That's almost $15 per contract gain!  If you had traded with us and bought just 5 contracts, you would have made $7,500 today, turning about $3,500 to about $11,000 in just 3 weeks!  These Dec 570 calls traded as high as $23 today and closed at $20.60.

The MOS trade was just opened on Friday.  We took some profits off the table this morning for an overnight profit of +29%:

November 23, 2009
07:07 | HappyTrading MOS ($57.00) Sold to Close MOSLK Dec 55 calls, at $4.00 +29%

The agriculture stocks have been hot, but, some profit-taking was appropriate.  These MOS Dec 55 calls went as high as $4.2 and closed at $2.63.  Although this sector closed mostly in the red, I don't think it's done going up.  I think we could see MOS testing $58 soon.  The Chinese agriculture stocks continued to shoot higher.  Origin Agritech (NASDAQ:SEED) flew over +100% today!!  Origin Agritech said Saturday its product is the "world's first genetically modified phytase corn" to be cleared for sale after the company received the Bio-safety Certificate from China's Ministry of Agriculture as a final approval.  While SEED does look toppy, the momentum could easily take a $10 stock up another +20% or so.  GRO also jumped, up +24.48%, on the heels of SEED's news.  I think we could see GRO up another couple of dollars as well.

Health care stocks were strong today as some stocks received upgrades from JP Morgan:  WLP +4.56%, ESRX +3.36%, UNH +1.82%, CI +7.56%.  Financials bounced a bit:  PNC +3.21%, PRU +2.96%, STT +2.3%, MA +2.18% (we started a new position on MA today).

The Dow was up +132.79 points; SPX added +14.86 points; Nasdaq jumped +29.97 points:

XLF (financials) bounced +1.44% while HGX (housing) gained +1.53%.  GLD (gold) and SLV (silver) were both in the green, with GLD hitting $115 intraday (see discussion in Sector Watch).  OIH (oil services) finally saw some buying, up +1.32%.  INX2 (Internet) led the techs with +2.08%.  FXI (Chinese ADRs) garnered +2.22%.


SPX added +14.86 points to close at 1106.24.  It closed above the 1100 level.  The daily MAs and MACD moved higher.


Nasdaq hopped +29.97 points to close at 2176.01.  It closed above its 10-day MA.  Its MACD went up.

The strength on the market today helped SPX back above that 1100 level.  VIX sank down to almost 21.  These are bullish signs.  We have more GDP data and consumer confidence report tomorrow, which could be especially important ahead of Black Friday and the so-called "Cyber Monday".  SPX tested 1110 today, but, could not stay above.  We'll need to see more strength in the financials for SPX to push through the recent resistance.

Good night and HappyTrading! ™