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Weak Retail And Housing Data Spooks Market: SPX, Nasdaq, MGM, WYNN, LVS, BAC, HBAN, FITB, CME, SKF, SRS

|Includes:BAC, CME, FITB, HBAN, LVS, MGM, SKF, SPDR S&P 500 Trust ETF (SPY), SRS, WYNN

Right out of the gate, the market was weak today.  Retail sales dropped and foreclosures on homes continued rising.  Stocks were mostly on the defensive and slipped lower as the day went.  Financials continued to fall from their recent heights.  BAC fell 10.20%; HBAN slumped 14.86%; FITB dropped 14.70%.  In the morning, MGM announced its plan to raise $2.5 billion to pay down its debts.  MGM shares stumbled nearly 30%, and fell another 11% after the market.  Other resorts and casinos companies were also affected: WYNN -11.95% and LVS -15.69%.

The Dow was down 184.22 points; SPX lost 24.43 points; Nasdaq tumbled 51.73 points:
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Techs were very weak: BTK (biotechs) and INX2 (internet) both fell more than 3%.  XME (metals and mining) dropped 8.84%.  Financials dipped 5.08%.  PBW (clean energy) was 7.75% lower.  GLD (gold) eked out a gain.  FXI (Chinese ADRs) lost 2.3%.

SPX
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SPX lost 24.43 points to close at 883.92.  It closed above the 20-day MA.  Its MACD went down.

Nasdaq
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Nasdaq tumbled 51.73 points to close at 1665.19.  It closed right at its 30-day MA, but, below the 1700 level.  The MACD curved lower.

The market was very weak today.  Most sectors went lower.  VIX pushed higher to almost 34.  Techs and financials continued to fall.  Nasdaq closed below 1700 and barely hung on to its 30-day MA.  Its 10-day MA just turned down.  SPX also broke below its support at 900.  The market struggled to hang on for 3 days and finally broke down.  Although it is the options expiration week and there are much manuevers (for example, CME jumping another +6% after yesterday's big rise!), market indices closing below the support levels are not bullish signs.  This big drop could induce more profit-taking and seduce more shorts to come back into the game.  SKF (financial ultrashort ETF) and SRS (real estate ultrashort ETF) both seem to have turned the corner.  We traded carefully to start the week and cashed in on our long plays, including another one on MOS June calls todya, for an overnight +17% gain.  We are mostly in cash and ready to switch gears to play the downside if the market breaks down further.

Good night and HappyTrading! ™

Stocks: SPY, MGM, WYNN, LVS, BAC, HBAN, FITB, CME, SKF, SRS