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Late Selling Sends Market Lower! SPX, Nasdaq, OSG, FRO, TK, AAPL, GOOG, CMG, NFLX, SNDK, VMW, MON, DNDN

|Includes:AAPL, CMG, DNDN, FRO, GOOG, MON, NFLX, Overseas Shipholding Group, Inc. (OSGB), TK, VMW, WDC

The market spent most of the day defending the SPX 1040 level.  We saw some bounces in the morning.  But, like I said in my article last night, "...the momentum is on the downside right now, and, bounces may invite more selling."  In the last hour of trading, the selling resumed on heavy volumes, ending the 2nd quarter with SPX down almost 12%!

Oil tankers tanked today:  OSG -4.56%, TK -3.11%, FRO -3.65%.  AAPL and GOOG, two of the tech heaveweights, countinued to be weak.  GOOG gave up another $9.31, ending below $445.  AAPL touched $250 intraday, closing down $4.64.  Some of the recent high-flyers finally showed some weakness:  CMG -1.18%, NFLX -3.49%, SNDK -1.34%, VMW -3.11%.  We locked in some profits on the CMG July 140 calls for a gain of +83%:

June 30, 2010
12:58 | HappyTrading CMG ($136.80) Sold to Close 07P140 Jul 140 put, at $6.60 +83%

These were opened yesterday morning at $3.6:
June 29, 2010
06:39 | HappyTrading CMG ($143.80) Bought to Open 07P140 Jul 140 put, at $3.60 

This morning, MON reported disappointing earnings as its net income sagged 45%!  MON's already-beaten stock sank another 2.37%.  After the market, DNDN tumbled a whopping 21.1%, as the U.S. Medicare program looked to evaluate data on Dendreon Corp's (NASDAQ:DNDN) prostate cancer therapy to decide whether to cover the product.

The Dow was down 96.28 points; SPX fell 10.53 points; Nasdaq lost 25.94 points:

XME (metals and mining) was weak again, down 1.45%.  SOXX (semiconductors) fell 1.59%.  XLF (financials) lost 1.22%.  OIH (oil services) bounced +0.52% (DO +3.37%, BP +4.37%).  GLD (gold) and SLV (silver) were slightly green.  FXI (Chinese ADRs) finished in the red again.

SPX

SPX lost 10.53 points to close at 1030.71.  It closed below the 1040 level.  The MACD curved down.

Nasdaq

Nasdaq fell 25.94 points to close at 2109.24.  Its daily MAs and MACD continued to drop.

The market fought hard to hold the key support levels (SPX 1040 and Nasdaq 2150) today.  But, gave in to the selling pressure in the last hour of trading.  Attention is now focused on the jobless claims (tomorrow) and the unemployment rate (Friday) reports.  As mentioned last night, for the SPX, below 1040, the next support is at 1025.  At this point, the selling pressure is so great that benign data in the latest jobs report might not help much.  On the other hand, if the data comes in worse than expected, the market can go into a steep fall.  VIX still has a resistance at 36, so we're being cautious and locking in profits on our downside plays along the way.

Good night and HappyTrading! ™



Disclosure: no positions
Stocks: OSGB, FRO, TK, AAPL, GOOG, CMG, NFLX, WDC, VMW, MON, DNDN