The market opened lower today, but, the weakness lasted no more than 15 minutes. Buyers came in and picked up stocks on the dip. Oil gapped lower at the open and most commodity sectors opened in the red. However, crude ended the day in the green, above $80/barrel! Biotechs continued to plow higher as BTK (biotech index) made yet another new all-time high. Some biotech gainers include: VPHM +4.16%, INCY +4.19%, AMAG +2.83%, FRX +2.22%, DNDN +4.05%, TEVA +2.22%. M&A activities and speculations seem to keep buyers in the biotech stocks.
Casino stocks were on fire today, as LVS received a price target boost from $22 to $24 with an "outperform" rating. LVS shares jumped +9.9% today. WYNN closed up +6.68%. MGM added +6.55%. Even gaming machine maker WMS garnered +3.7%. Today's move in the gaming sector was significant, as both LVS and WYNN broke above the recent resistance levels and made new 52-week highs. I think we can see both of these stocks run higher this week. We made a quick intraday trade on WYNN with a +60% profit today:
March 22, 2010
12:21 | HappyTrading WYNN ($76.60) Sold to Close 04C75 Apr 75 calls, at $4.00 +60%
08:54 | HappyTrading WYNN ($74.30) Bought to Open 04C75 Apr 75 calls, at $2.50
With +60% in just 3-and-a-half hours, we opted to lock in some profits!
The Dow was up +43.91 points; SPX added +5.91 points; Nasdaq gained +20.99 points:
SOXX (semiconductors) led the techs with a +2.41% gain. XLF (financials) barely closed in the green, while HGX (housing) added +1.57%. XLE (energy) stayed weak as UNG (natural gas) still found no strength. GLD (gold) and SLV (silver) slid. FXI (Chinese ADRs) was flat.
SPX came down to just below 1553 this morning and closed above 1165. Nasdaq peeked above 2400, but, did not hold the level for the close. The market still feels strong. It looks like SPX can test 1170 soon. If SPX 1170 is broken, the market will have a new leg higher. What was impressive was that the financials remained strong even with potential new regulations being debated in the Senate. Commodity sectors remained sensitive to the dollar.
What we have been seeing in the recent months could be a change of leadership in the market. Although commodity sectors still carry a big weight, tech stocks are emerging as the new leaders. Today was a very good example as commodity sectors were mostly flat to red, but, Nasdaq gained +21 points and SPX added almost +6 points!
In the news today was Google (NASDAQ:GOOG) and its struggle with China's censorship laws. GOOG finally announced today that it will end censoring on its China site. It moved its China site off of the mainland and into Hong Kong, which for most parts, have been allowed to preserve its legal and political freedoms. Many analysts are expecting some sort of severe response from the Chinese government. I, personally, think (and hope) otherwise. I think things are changing in China and they are changing fast. China is swiftly becoming one of the most powerful countries in the world, and to remain there, China can no longer afford to close just its doors to foreigners; nor does it want to. International relationships have become vital to China's global status and its own internal developments. China wants to be a global leader, but to lead, one needs to listen and not rule by force. I think the Chinese government and GOOG's board are smarter than what most people give them credit for. Perhaps GOOG's move to Hong Kong was THE result of a "discussed compromise" with China. At this point, how do we know it's not? There's no way that China can come out and publicly say, "Well, Google, you could move your site to Hong Kong and still stay operational."
Somehow, people seem to think of bad scenarios first. There are people talking about the US government being involved. Others are fearing the tension mounting between the US and China. People really should start thinking differently. I think this whole world is changing. People from different countries are getting closer and closer. A big reason is the Internet. With all the social networking sites, blogging sites, people from all over the world are sharing their ideas, cultures, thoughts, time, and lives every second of the day! I think we all need to change the way we think. Think more positively and more positive results will happen. Why can't there be peaceful and mutually beneficial solutions to our problems? In fact, why shouldn't there be? With the Internet revolution pushing forward, technologies are shaping our lives and our futures, and our futures are all now intermingled and becoming a gigantic, global network. So, I think (and hope) that China and Google will arrive, and perhaps already have, for the interim, at a win-win solution regarding China's Internet censorship.
In any case, GOOG finished the day down just $2.5, while BIDU added $10! BIDU still seems to be the one benefitting from the situation. We could see BIDU testing the $600 level again, soon.
Good night and HappyTrading! ™
Disclosure: no positions