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Is The Market Ready To Come Down? SPX, Nasdaq, WFC, STI, NOV, DO, BAC, IBM

|Includes: BAC, DO, IBM, NOV, STI, Wells Fargo & Co. (WFC)

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The market finally came down, in a big way, after 6 weeks of rally!!  Right out the gate, selling was intense, and... the market just kept sliding, until the close!  Weakness was across the board.  Financials and energy sectors were especially weak:  WFC -16.09%; STI -18.46%; NOV -8.75%; DO -5.58%.  After the market, BAC reported a quarterly profit of $2.81 billion, but warned of worsening loan default problems.  BAC fell more than 24% during the day, and dropped an additional 3% in AH trading!  IBM reported better-than-expected earnings, but the shares were down 1.82% after the market.

Even though the market was weak, we locked in more profits:
12:44 | HappyTrading ICE ($85.60) Sold to Close ICEER May 90 calls, at $4.10 -16%
12:20 | HappyTrading DNDN ($19.45) Sold to Close UKOEW May 18 calls, at $4.60 +15%
11:52 | HappyTrading DNDN ($19.87) Sold to Close UKOEW May 18 calls, at $5.00 +25%
07:48 | HappyTrading STI ($15.90) Sold to Close SFJEC May 15 calls, at $2.80 +30%

DNDN jumped +8.5% today.  We cashed out on our May 17.5 calls for +25% gain.  We also protected the profits on our last batch of STI May 15 calls, which we cashed the majority out on Friday for as high as +100%.  We got into ICE briefly on the May 90 calls, but, as the market kept sliding, we stopped these out at -16%.  We finished the day holding mostly cash waiting to see how the market moves from this sharp tumble.

The Dow was down 289.6 points; SPX lost 37.21 points; Nasdaq dropped 64.86 points:
http://www.myhappytrading.com/cfs-file.ashx/__key/CommunityServer.Blogs.Components.WeblogFiles/andy_5F00_wang.Apr09/indices_5F00_4_5F00_20_5F00_09.jpg
Most sectors were down today.  GLD (gold) and SLV (silver) bounced about +2%.  Other commodity-related sectors were very weak:  XLE (energy) -4.85%, OIH (oil services) -6.46%; USO (oil) -7.57%; XME (metas and mining) -7.85%.  Techs were also weak with SOXX (semiconductors) down 5.74%.  FXI (Chinese ADRs) fell 3.3%.

SPX
http://www.myhappytrading.com/cfs-file.ashx/__key/CommunityServer.Blogs.Components.WeblogFiles/andy_5F00_wang.Apr09/indices_5F00_4_5F00_20_5F00_09.jpg
SPX lost 37.21 points to close at 832.39.  It closed at the 20-day MA.  MACD went lower.

Nasdaq
http://www.myhappytrading.com/cfs-file.ashx/__key/CommunityServer.Blogs.Components.WeblogFiles/andy_5F00_wang.Apr09/Nasdaq_5F00_4_5F00_20_5F00_09.jpg
Nasdaq dropped 64.86 points to close at 1608.21, staying above 1600.  The MACD was down.

In one stumble, both SPX and Nasdaq fell below their respective 10-day MAs.  After rising for 6 straight weeks, is the market finally ready to come down?  SKF and SRS both jumped more than +20%.  VIX bounced above 39!!  Asian market are all trading lower this evening.  We'll have to see if the 20-day MAs will hold tomorrow.  Below those, the 30-day MAs are the next supports, SPX at about 800 and Nasdaq about 1550.  The selling was pretty harsh all day today.  We might see some bounces in the morning.  But, if the market turns lower again in the afternoon, we could be looking to play the down side!

Good night and HappyTrading! ™

WFC none, STI none, NOV none, DO none, BAC none, IBM none