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  • Market Slumps With Falling Euro! 0 comments
    May 18, 2010 11:08 PM | about stocks: CME, ICE, GS, MA, V, WFC, JPM, SHLD, WYNN, LVS, MGM

    The market opened higher this morning, but, immediately started to slide.  Euro was also higher this morning, and it too, slipped from the open.  As the Euro went lower and lower, so did the market.  If you have been reading my articles, you would know that I have been more and more bearish about the market.  Yesterday, we opened some puts (downside trades), and today, we were able to lock in some profits.  We got into SHLD May 95 puts yesterday at $1.59 and got a +183% profit just 1 day after:

    May 18, 2010
    12:27 | HappyTrading SHLD ($102.30) Sold to Close 05P105 May 105 put, at $4.50 +183%

    May 17, 2010
    06:53 | HappyTrading SHLD ($108.50) Bought to Open 05P105 May 105 put, at $1.59

    For myself, I added some more of these SHLD May 95 puts this morning and cash some out today too at the day high, $4.95, which gave me an "intraday" profit of +175%:

    In the Trading Room, among other trades, we were trading CME and ICE puts:

    May 18, 2010 10:43 AM
    ICE/CME
    coming down...

    May 18, 2010 10:46 AM
    CME
    coming down to test $310; 310 puts decently priced...

    May 18, 2010 10:55 AM
    CME 310 puts
    was at $3.5, now $4.5

    May 18, 2010 12:33 PM
    CME 310 puts
    now asking $7 (that's a double in 2 hours!!)

    Financials led the market down.  GS were really weak.  It closed down $5.28 at $137.36, below the $140 mark.  MA and V continued to sink.  MA traded as low as $195.58 before bouncing back to close at $202.81.  Just 2 weeks ago, MA was a $250 stock!!  V was trading around $90; it closed at $70 today!  WFC slumped 4.32% and JPM fell 2.06%.  Commodity sectors were strong in the morning, but, ended mostly in the red.

    The Dow was down 114.88 points; SPX fell 16.14 points; Nasdaq slumped 36.97 points:

    XLF (financials) fell 2.86%.  SOXX (semiconductors) led the techs lower with a 2.93% decline.  OIH (oil services) dropped 1.56% while USO (oil) was down 1.21%.  GLD (gold) and SLV (silver) both traded higher.  FXI (Chinese ADRs) slid.

    SPX

    SPX fell 16.14 points to close at 1120.80, just above the 1120 level.  The daily MAs and MACD curved down.

    Nasdaq

    Nasdaq dropped 36.97 points to close at 2317.26, above the 2300 level.  Its daily MAs and MACD also went lower.

    SPX has been testing the 1130 level since last Friday.  Today, it finally closed below it.  It found some support at 1120 today.  Below 1120, the next support is at 1110.  After the market, HPQ reported better-than-expected earnings.  Its shares added +2.27% in after-hours trading.  HPQ may provide some strength for the techs at open, but still, the momentum is on the downside.  Casino stocks were very strong in the morning.  WYNN was up more than $3 at one point, trading as high as $85.75.  It closed in the red at $80.77.  LVS and MGM also closed lower.  Last night, John Paulson's fund disclosed that he bought into casino names in 2010.  This provided early strength for the casino stocks today.  However, they were pulled down along with the market.  If WYNN breaks below $80, it could break down.  For LVS, the support is at $22.  If the market continues to weaken, casino stocks could provide some opportunities for downside plays.

    Good night and HappyTrading! ™



    Disclosure: no positions
    Stocks: CME, ICE, GS, MA, V, WFC, JPM, SHLD, WYNN, LVS, MGM
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